The Obama administration announced new efforts to help the resolve the mortgage crisis. Under intense scrutiny for not doing enough to help homeowners who are ‘upside down’ in their homes or are unemployed, they hope this will help dig the nation out of it’s mortgage troubles.
The program is designed to help address the mounting problem of decreasing property values. The administration hopes that the banks holding the mortgages will work toward reducing the principal balance on mortgages that are higher than the market value on the home. The problem is that the banks are holding out.