The housing recovery is uneven at best – while in strong markets, home values have rebounded, many low-income homeowners have seen home prices in their neighborhoods continue to decline. Perhaps in response to the recent SCOTUS ruling that prevents second mortgages from being discharged in bankruptcy, Elyse Cherry of Boston Community Capital proposes three ways to help low-income homeowners:

• Reduce mortgage principal for struggling homeowners
• In designated “underwater neighborhoods:”
  • Provide a tax credit equal to the cost of repairs to help LI homeowners keep the home sellable, and
  • Write off the difference between the sales price of the home and what is owed.
• Help troubled low-income homeowners repair their credit fast.

Cherry suggests these measures could be paid for by the proceeds from the settlements with banks.

They’re creative solutions to a massive problem. Read more here.