Programs to help struggling homeowners are working
(Las Vegas, NV)- A new report says that programs to help homeowners who are upsidedown in their mortgages are working!
The Amherst Securities Group report looked at "Principal Reductions". In 2011 only 12% of struggling homeowners who got these "Principal Reductions" ended up defaulting.
The default rate was much higher with other kinds of loan modifications such as an interest rate reduction.
The success of these kinds of programs could lead to more banks offering "Principal Reductions" to struggling homeowners.