Discounted Mortgage Notes The Key To Addressing Foreclosure Crisis?

In a column on Bloomberg News, commentator John F. Wasik writes:

• [W]here politicians and bankers see vexing liabilities in defaulted mortgages and foreclosures, Robert Lee sees opportunities as he picks up the pieces of the housing bust. [...] Buying defaulted mortgages at a discount, Lee encourages and enables owners to stay in their properties and avoid foreclosure. His company buys the loans, not the homes, then employs a "work- out, not kick-out" approach in working with homeowners.

• Unless a comprehensive federal bailout reduces foreclosures, areas with the highest defaults will continue to show dramatic price declines as more properties fall into the hands of lenders and courts. The idea of discounting notes to reflect realistic market values may be the key to getting the market on its feet.

For more, see Discounted Mortgage Notes Can Stop Foreclosures.