
The current mortgage modification plan was based on subprime borrowers - who constituted the first wave of defaults. Now unemployment is fueling the foreclosure crisis and it is not limited to subprime borrowers. It includes alt-a loans and prime loans too. According to the Wall Street Journal article, the administration realizes that unemployment is now a significant factor and they are looking at their options. Let's hope they get some advice from some experts in California where we seem to be at the forefront of this problem.
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