Submitted by N Habash (not verified) on Sun, 03/01/2009 - 5:47pm.
A possible partial solution to the rash of foreclosures is for banks to arange for interest only payments with homeowners that can possibly avoid foreclosure through a reduction in the monthly mortgage payment. This would freeze the principle balance at a current value for an agreed period of time giving some households the oportunity to avoid foreclosure and for the banks the continued cashflow and avoidance of cost associated with foreclosure.
HOusing, Banks and Forclosures