BUSH-whack has now added the word “preventable” before foreclosures…
SO, a “preventable foreclosure” is one where the borrower is foolish/cluless enough to accept a modification that is not in their best interest, so they can remain a “homeowner” owing somwhere between 20%-100% more that the house is worth.
In the FDIC thesis, they expect a re-default rate of one third. The net result is that two thirds of the original defaults end up in foreclosure eventually, BUT they “saved” one third through “successful” mods.. Isn’t that special ??
Cannot imagine the actual dollar cost to the taxpayer. Trillion has become a meaningless word.
HLS
