Industry News

Foreclosure fix: ‘The Last Chance Mortgage’

How we got into this mess and how to get out

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NEW YORK -- The U.S. housing market is in bad shape, but John H. Vogel Jr. is a man with a plan. Vogel, a permanent adjunct professor for the Tuck School of Business at Dartmouth College who spoke during the Real Estate Connect NYC conference Thursday, shared his proposal for saving millions of homeowners from foreclosure through a "Last Chance Mortgage" program. He envisions a program with a fixed mortgage interest rate of 3.5 percent to benefit those families who are facing foreclosure, though he said it's not a "bailout." Homeowners participating in the program would give up the chance to profit from any appreciation in home values, and the homes would become part of a pool of affordable housing. Also, homes enrolled in the program would be assessed at 80 percent of the current value. Creating such a uniform standard "would certainly free up capital. One of the biggest problems going on is the uncertainty in the market right now. This creates certainty," he said. The ...