According to RealtyTrac, nearly 3 million foreclosures were filed in 2009. And with almost 10 percent of all mortgages now delinquent nationally, those homeowners are faced with a painful decision: Continue to make payments even if they are underwater, or do a “strategic default.” 

unemploymentAccording to the U.S. Labor Department, the economy added 162,000 jobs in March, the most since the beginning of the worst recession since the 1930s. This was below expectations that predicted 190,000 jobs.

model houseThe Federal Reserve ended its largest intervention in the housing market on April 1, ceasing its purchase of Mortgage-Backed Securities (MBS) that began in September of 2008 in order to keep the housing market from imploding.

Voice of America on April 1 quoted U.S. Treasury Secretary Timothy Geithner’s statement that the U.S. jobless rate will be "unacceptably high" for a long time.

home foreclosureFriday’s announcement of more intervention in the housing mortgage market will result in a deeper, longer, and more painful delay in the inevitable decline in housing prices that are necessary to clear the market. According to the Obama administration, the “broad new initiatives” will help troubled homeowners to refinance their existing mortgages with more favorable affordable ones provided directly by the government. Part of the new program is “meant to temporarily reduce the payments of [those] borrowers who are unemployed [but are] seeking a job.” In addition, the enhancements include inducements to “encourage lenders to write down the value of loans [already] held by borrowers in modification programs.”

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