Wednesday
December 17, 2014

Housing Recovery Tied to Mortgage Debt Levels

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Housing Recovery Tied to Mortgage Debt Levels

Extending tax relief on debt forgiveness is “a high priority,” HUD Secretary Shaun Donovan said at a Senate Banking Committee hearing Thursday. His remarks come at a time when buyers are being drawn back to the housing market thanks to low mortage rates and other factors.

Prices are rising because the number of foreclosures is declining and underwater borrowers are getting a break, as banks slash the balances of thousands of mortgages and let home owners sell for less than the value of their loans rather than go into foreclosure.

Source: “Housing Recovery Depends on Slashing Mortgage Debt,” CNBC.com (Dec. 6, 2012)

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