I've been saying this for 2 years. Putting a bandaid on the housing market such as these Obama mortgage manipulations has been an epic fail. When the average schmuck sits in a house without paying his mortgage for 12-24 months, there's a real break down in the foreclosure system that will only prolong this meltdown exponentially.
The first thing we need to do is get everyone 90 days or more behind out on the curb yesterday.
The second thing is all inventory from Fannie/Freddie and any bank that took TARP, including the millions in hidden shadow inventory, must be available for sale now. Yes, this will temporarily kill the value of our homes, but it will force all foreclosed inventory onto the market for pennies on the dollar.
Until the deadbeats are out of their homes and until countless millions of foreclosed homes are sold, there will be no housing recovery and no recovery for the middle class.