What are your thoughts on proposed changes to HARP to help out underwater borrowers?
Posted by Matthew Brian Hersh on November 1, 2011
Last week, we asked readers “What are your thoughts on proposed changes to HARP to help out underwater borrowers?” Here’s how you responded:
“While it is a good program to help reduce mortgage payments for those who are keeping current on their payments, it does not address the long term issue of the disconnect between loan values and the falling housing prices/markets. This also seems to push a schizophrenic approach with financial institutions. On one hand it cleans up bad loans and strengthens their balance sheets and on the other hand you have loans that aren’t fully secured by the value of the asset/home.“
“Helpful, but it doesn’t address the need to realign debt with current values through principal reduction.“
“It may prevent some people from strategically defaulting and supports homeowners that stay current.“