U.S. News & World Report Features BCC's SUN Initiative
Boston Community Capital's SUN Initiative was featured in the U.S. News & World Report article, "How to Fix the Underwater Mortgage Problem." The article, written by John Vogel, explains that one potential solution to solving the issue of underwater mortgages is shared appreciation.
Vogel explains: "One potential solution is shared appreciation mortgages. Essentially, in exchange for a reduction in their mortgage principal, homeowners would give up some percentage (I recommend 50 percent) of the future appreciation on their house when it is sold. This is a complex instrument, but I believe it could be simplified and standardized. The loan reduction could be based on a simple appraisal and the lenders share of future appreciation would be 50 percent of the difference between the future sales price and the appraisal."