Family Life

01.20.11 |

Two mortgage researchers say they have found a way to stop the number of foreclosures. One of the men, Brent Ambrose, is a professor of real estate studies at Penn State. He says the mortgage contract should automatically reset the balance and the monthly payment based on the home's actual market value. So if a home loses half its worth, the payment would drop by half. The loan would be reset at certain intervals. They say it's cheaper for the banks to do that than to lose so much cash to foreclosures.