So much for the save the homeowner strategy...lets try it again and again and again...

[Neshanic]

http://www.usnews.com/blogs/the-home-front/2008/12/8/6-reasons-modified-loans-are-going-bad-again.html?ref=patrick.net

"Well, according to Comptroller of the Currency John Dugan--a top bank regulator--more than half of the mortgages that were modified in the first three months of this year went delinquent again within six months. “After three months, nearly 36 percent of the borrowers had re-defaulted by being more than 30 days past due. After six months, the rate was nearly 53 percent, and after eight months, 58 percent,” Dugan said Monday in a speech."

[mrreowwr_kittty]

1. You can't restructure someone into a job that pays enough. nt

[juno jones]

2. Yeah

It seems to be a convienent oversight of the 'bought too big' moralists that for the most part everyone was keeping their houses until the economy went south. The 'financial institutions' can work with you (and they weren't willing to work with anybody until the crisis grew to unmanagable enough proportions to start scaring even those greedheads) but without a job...or with an 8-10 dollar an hour PT piece of doodoo...people aren't going to be affording much. Even cheap-ass homes are being vacated.

If this had been done a year or two ago, we would be in better shape. It's like the next card to fall, the credit cards. If they would back off their insane greed for high interest and hidden fees, they might stay liquid. If they had accomodated more people a year or two ago, they would still have more customers and those payments coming in. But no, their rapaciousness will take them...and us...down sooner or later and some last minute month long 'amnesty' like they've tried in England ain't gonna do squat.

[Greyhound]

3. Correct me if I'm wrong, but I read that the "restructuring", in most cases, simply

entailed extending the term of the loan.

This is doomed to fail from the outset as the root problem of the housing crisis is the artificially inflated house valuations. That house simply is not worth what you paid for it and it must be allowed to deflate to restore economic balance.