By Sarah Horner
Over the past couple of years, yes, it has turned from months to years, the real estate market, like the rest of today’s economy has been facing some hard times. With the recession that has befallen the United States, new heights in unemployment and lay-offs, many people are struggling to pay their mortgages. The question on everyone’s mind is, what is going to happen next?
President Barack Obama recently took office and has a number of plans in mind to stimulate the economy, but what is the best strategy in order to fix this mortgage issue. An article from MSNBC.com entitled, “Fight building over judges redoing mortgages,” discusses one viable option.
One plan that has been under discussion lately, and has the backing of president Obama is to allow these homeowners to declare bankruptcy and let judges dictate new, more manageable mortgage terms. This is a nice solution for the people paying the mortgages, however lenders are disagreeing. The article from MSNBC, argues that in the end, this would only lead to higher interest and bigger down payments for new homebuyers.
It is difficult to know what the best option for dealing with such a large-scale problem such as this might be. However, something must be done and it must be done soon. It will be interesting to see what plan of action Obama takes in the next few months.