The Obama Foreclosure Plan Is Not Enough

The numbers are disappointing. No, the numbers indicate failure on the part of the Obama Administration in addressing the foreclosure nightmare.

And part of the reason for this failure is the dismal response by the Administration to the proposal to change current bankruptcy law allowing "cram downs" of loan modifications (now, remember, bankruptcy judges can cram down loan modifications for corporations in bankruptcy or for your second home, but not a primary residence). The lack of this leverage, I think, is allowing banks to dilly-dally in modifications.

But allowing foreclosures diminishes property values in an economy of already souring real estate. The diminishing values, in other words, the amount of equity already lost, will apparently pay for the health care changes the Obama Administration wants.

Hmmm. Once again, isn't it time to stop these foreclosures?