The Boston Fed did a study looking at Obama's premier program to fix the mortgage crisis by providing financial incentives for lenders to modify delinquent loans. Its conclusion is it doesn't work as most mortgage companies are hesitant to modify the loans. The reason is simply they lose money on the deals.
Part of this is that a lot of borrowers end up delinquent again anyway and another large group fix the problem themselves. The Fed says one simpler solution would be to just give the cash to homeowners and use it to pay the mortgages. Just as I predicted the government will end up using my tax dollars to keep people in their overpriced homes.
Why do I pay my mortgage every month?