“Housing Recovery” tied to Mortgage Debt Levels!

Extending tax relief on debt forgiveness is “a high priority,” HUD Secretary Shaun Donovan said at a Senate Banking Committee hearing Thursday. His remarks come at a time when buyers are being drawn back to the housing market thanks to low mortgage rates and other factors.

Prices are rising because the number of foreclosures is declining and underwater borrowers are getting a break, as banks slash the balances of thousands of mortgages and let home owners sell for less than the value of their loans rather than go into foreclosure. Please comments about this and reflections of your market?

Source: “Housing Recovery Depends on Slashing Mortgage Debt,” CNBC.com (Dec. 6, 2012)