Tuesday, April 14, 2009

Modifying Loans May Not Stem The Tide of Foreclosure

Do you think they're FINALLY starting to see the light?

NEW YORK (Reuters) – Unemployment is a bigger reason for missed mortgage payments than high interest rates, according to a study from the Boston Federal Reserve that raises questions about President Barack Obama's plan to stem foreclosures by modifying loans.

Could it be that one's ability to PAY on the mortgages might have something to do with a rise in foreclosures? Perhaps the good folks down at the Boston Federal Reserve may wish to broaden the scope of their observations to include not only unemployment but also underemployment and low wages? That may help them to further comprehend the deeper issues of economic insolvency facing the world.

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