Refinancing Possibility\" Please respond to the following: The current economic

Question

Refinancing Possibility" Please respond to the following:

The current economic downturn has created quite a bit of publicity about the number of bankruptcies and foreclosures in the U.S. Consider an instance in which the mortgage holder is willing to work with the debtor to refinance the property so that all interests are protected. Devise the best possible refinancing solution in the event of a mortgage of $100,000, property value of $80,000, and the ability of the debtor to pay back $60,000 over time

Explanation / Answer

The best refinancing option available is to sell the property to the mortgage company and take back on the lease. In this case the debtor will be paying $40,000 as lease (including interest) and $20000 as principle.

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