when it comes to home mortgages, especially those already out there, if the housing market continues to decline the way it has since august then financial institutions that currently hold them will end up taking a substantial loss of revenue if they forclose and end up allowing the homes to be auctioned off if they cannot sell.
this is especially true if the prospective buyers that are now unable to get approved for a mortgage under the new business practices of the financial institutions. It is my opinion that the financial institutions that deal with home mortgages would do far better to rework the mortgages so that the current home owners so that they take in a lower profit margine but still end up getting the money that they had to pay out on the initial note during the purchase of the home.
No comments:
Post a Comment