Foreclosure Suits Could Be 'Very Damaging'

Before you go, we thought you'd like these...
Before you go close icon
A voice of educated reason has weighed in on the foreclosure mess. Sheila Bair, the chair of the Federal Deposit Insurance Corp., which insures consumer bank deposits, expressed concern during a housing finance conference in Washington, D.C., that a glut of foreclosure litigation would "ultimately be very damaging to our housing markets if it ends up unduly prolonging those foreclosures that are necessary and justified."

Bair recommended a "global solution" to the foreclosure paperwork debacle that could lower monthly payments for some troubled homeowners by as much as 25 percent through mortgage modifications. She also reported that FDIC-sponsored mortgage modifications in which the agency cut loan payments by 10 percent to 40 percent had shrunk "redefault" rates by half.

For more on related topics see these AOL Real Estateguides:

For more on related topics see these
AOL Real Estateguides:
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

Find a New Home

Powered by Zillow

From Our Partners