60 Minutes tonight documented how foreclosures on underwater mortgages are destroying entire neighborhoods. The banks don’t even want to take possession of the houses, but they keep foreclosing and evicting rather than modifying the mortgages, which would keep the houses occupied and get the banks 50% or more of the mortgage which drops to zero or a little more after foreclosure.
Modified mortgages are in the interest of the banks, the communities and, of course, the mortgage holders. It is stupid and shameful, after three years of historically high foreclosures, that banks still refuse to modify mortgages and the government refuses to do anything meaningful about it.
Read and watch the story here.