Let’s not forget, unemployment is on the rise. Even Greenspan noted this morning in congressional hearings that it will rise substantially no matter what intervention the govt tries.
This single variable alone is going to torpedo the foreclosure “relief” activities. I may save some percent of “troubled” borrowers, but a whole new group of troubled borrowers are going to emerge. Is the govt going to save them too?
I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.
Lastly, on CNBC this morning it was noted that there was similar foreclosure law passed (I beleive in Oregon?) where all foreclosures have a 90 day moratorium, so during the summer months NOD’s decreased substantially, but this month they spiked 460%.
I’m not convinced the new CA law is going to stem any foreclosures in the long run…
