Futile Foreclosure Plan

[Originially posted at The Corner by my husband]

One of the most important things to note about the new Obama forclosure plan is that we know it won't work as advertised. As John Berlau points out here, people who have their loans modified to help them out actually redefault for the most part. The latest figures indicate that 36% redefault after just three months, and by eight months it's almost 60%. There is no evidence to suggest that this new mortgage restructuring plan will be any more successful. In that respect, Obama is doing just what he said he wouldn't do, throwing good money after bad. Moreover, by delaying the "clean break" that foreclosure actually represents, the plan actually subsidizes harm with taxpayer money. For those who will redefault, that is a bad thing.