The Obama Administration is set to announce a new initiative to tackle the growing foreclosure crisis - requiring lenders to slash or altogether eliminate monthly mortgage payments for unemployed borrowers for at least six months.
Looks like Peggy Joseph has the last laugh.
UPDATE: Bloomberg News is reporting that more than half of US borrowers who received loan modifications on delinquent mortgages defaulted again after nine months.
UPDATE II: Part of the new housing policy will include "strongly encouraging" lenders to write down the value of loans for borrowers in modification programs. Up until now, the HAMP program has focused on lowering interest rates. There's a moral (hazard) in this story somewhere...