Here’s a surprise

Modified mortgage default rates soar.

The number of homeowners who defaulted on their mortgages even after securing cheaper terms through the government’s modification program nearly doubled in March, continuing a trend that could undermine the entire program.

Real estate is not coming back to 2007 levels anytime soon, so homeowners are just hanging on, living rent free, until they have to move. All of our money being spent to subsidize their new, mortgage-free lifestyle accomplishes nothing except to keep better-qualified buyers from owning a home. Time to flush the stables and start anew.

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One response to “Here’s a surprise

  1. Peg

    If you want a good example of how it really is impossible, long term, to control markets without serious effects – here it is, Christopher.