Found 1 blog entry tagged as Shared Appreciation Mortgage Modification.

With the news release of Governor Andrew Cuomo having introduced the notion of Shared Appreciation Mortgage Modifications, Americans have concluded to have mixed emotions about the new regulation.  Shared appreciation modifications allow banks to lower the amount of principle outstanding on a home, in exchange for a percentage of the home’s future value increase.  Sounds dreamy, no?  Seemingly a “happily ever after” for homeowners nearing foreclosure, this proposal allows for a way out.

The proposed regulation limits the mortgage investor’s share to either the amount of the reduction plus interest, or half of the appreciation amount in market value—whichever is less.  This important limitation—while solving the problem at hand—has investors skeptical. …

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