Writing Down Mortgage Principal – Published by Urban Land Institute

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Historically housing turns a recession around, but underwater mortgages are compelling more foreclosures and pushing home values to unnatural lows.  Economist John McIlwain suggests that the solution to the current economic crisis is principal write downs on under water homes, allowing mobility of workers and preventing an over correction where home values fall farther than they otherwise would.

http://urbanland.uli.org/Articles/2011/December/McIlwainMortgage

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