Thursday, March 25, 2010

In an article on the unsurprising tendency of people receiving mortgage modifications defaulting again, the reporter says: "...homeowners are struggling to make payments as depressed housing prices leave them owing more than their properties are worth".

No, if they're struggling to make the payments, it is because they took on more mortgage than they could handle, in many cases because they lied on their mortgage application.

Depressed housing prices make them less willing to make the payments.

And of course, notwithstanding the fact that over half of those receiving a loan modification default again within six months, the Obama Administration is pushing lenders to expand the program. Nothing like learning from failure, right?