Foreclosure Is Not an Option

By David Bornstein

Ben Baker-Smith

A home boarded up in Slavic Village section of Cleveland, Ohio, in October of 2008.

Given the grim news in lending and home financing in recent months, it would appear that little can be done to stem the tide of foreclosures sweeping the nation.

Nationally, some 4 million homeowners are facing foreclosure this year and another 11 million are “underwater,” meaning that they owe more on their mortgages than their homes are now worth. During the past quarter, foreclosure filings were reported on more than 930,000 properties, with September 2010 being the first time banks repossessed more than 100,000 homes in a single month. The Obama administration took a positive step last year when it established the Home Affordable Modification Program, an agency devoted to helping homeowners in trouble, but by most accounts, it has been a disappointment. To date it has yielded only 520,000 active permanent modifications.
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