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  • Is it time for underwater homeowners to be given a get-out-of-debt-free card?

    06/28/2009 3:25:45 AM PDT · by Zakeet · 47 replies · 2,646+ views
    Los Angeles Times ^ | June 27, 2009 | Tom Petruno
    Some housing experts believe there is no alternative but outright forgiveness of a substantial chunk of mortgage debt for many people who are at risk of foreclosure.Government and private-lender attempts to stem the home foreclosure crisis so far have mostly focused on loan modifications or refinancing -- giving borrowers a temporary or permanent reduction in their monthly payments. But some housing experts say the next wave of help will have to address the core problem for many homeowners: negative equity. This camp believes that there is no alternative but outright forgiveness of a substantial chunk of mortgage debt for many...