Megan pointed this out more than a week ago, but today the editorialists at The New York Times are also highlighting the central flaw of the updated foreclosure
“„Those efforts would reduce the monthly payment and restore some home equity, but as with earlier antiforeclosure efforts, lenders are not required to help. Despite government incentives to modify bad loans, lenders might wait to see if bigger incentives are offered later. They may also prefer foreclosure to modifications because the long foreclosure process lets them postpone taking losses.