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 April 15, 2009

Mortgage Modifications Being Questioned by Economists
A recent study conducted by the Boston Federal Reserve shows that buyers are more likely to fall into default on their mortgages due to the loss of a job than because of the terms of their existing home loans.
A result of the study, it is the opinion of the Boston Federal Reserve that increased funds be spent on helping people become employed as opposed to the continued creation of loan modification programs.

It is the suggestion of the economists that a another approach to the tackling of this problem is for the government to develop programs which would replace a portion of an individual's lost income after the loss of a job with a grant or a loan. After that assistance, if the individual still defaults, then the government could have programs in place to assist those individuals to transition them from home owners to renters.