A better way to clear out bad mortgages

Bruce Norris, President of The Norris Group, a real estate investment company, said the banks’ procrastination accounts for delinquent homeowners staying in their houses for up to two years without making any mortgage payments and without being evicted. It is not unusual that at the end of their free say that the same people demand “cash for keys” to leave without trashing the place, he added with chagrin. Norris had a couple suggestions for enlarging the pool of people qualified to buy the massive number of houses with failed mortgages. One way would be to allow people to buy homes with no money down as long as they have income enough to afford the mortgage. There are plenty of would be buyers able to afford a home at today’s low prices and interest rates who don’t have enough saved for a down payment, Norris said. If any of them later default, he suggested that another buyer should be allowed to take title by making good on the missed payments.