Will HAMP pick up on… Write-downs?

As a Stockton, CA Real Estate agent, I feel we should get right down to the point… the point of negative equity. Negative equity has caused homeowners heartache and this economy is suffering behind it too. So many homeowners are in upside down situation that it is hard to see the upside of real estate. To add to the matter, we have the largest job loss and other hardships that have affected almost every home in America. It is time to get serious and get to moving a little faster to help resolve these problems.

Is negative equity going away anytime soon? Will it take everyone to get into foreclosure before something stiff and resolving is done? I mean I'd rather get back to real estate the way it was before this crisis - wouldn't you? Foreclosures were always around but not in the numbers and attention that they are getting now.

Is the HAMP program looking into the possibility of WRITE- DOWNS? QUESTION: What is a write-down?

ANSWER: Write down means principal reduction to upside down property mortgages.

That’s right, just write it down to the principal amount in order to match the market. And no, we would not need to do it every time the market moves. Just match the two when the home owner applies for a loan modification or a Short Sale and yes even a Deed in Lieu of. Let’s try something that may really work and help the homeowners right away.

No trial period needed – just be real about the market value of the property and make the mortgage match it. Once you get going with it… might be faster, easier, less stress and HELPFUL!

Side note: Make this an option in the HAMP loan modification program. Write-down. Then we’ll really be Making Home Affordable!!!

Still not convinced and Why write-downs you say? Why not – I say. Look at it like this… we Wrote it up back in the late 2004, 2005 and some of 2006 didn’t we? Come on now, you remember when….the property value went to the sky? Well it has come down but guess what??? The principal balance did not come down with it!!! Not fair! Come on U.S let’s fix it with…. – write it downs!

And…If you are still are not convinced. Here are just a few ways writing down the principal can help homeowners:

• Help those that have an approved loan modification – succeed!
  
• Yes, that means not go re-default.
  
• Create incentive for homeowners to stay in their home and not just walk away…
  
• It can help property values from the continual downRIDE in value

And I know there are lots more reasons why this would help our homeowners, thus our economy.