Fed Finally Urging Lenders to Write-Down Loan Principal or Payments
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Federal Reserve Chairman Ben S. Bernanke has joined lawmakers and Treasury officials in noting the difficulty created by declining home prices. In some instances, the slump means that homeowners owe more than the house is worth. In those cases, "the best solution may be a write-down of principal or other permanent modification of the loan by the servicer." -Washington Post
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