The following article:

“Florida homeowners to get $1B under Bank of America settlement - Tampa Bay Business Journal”

(link: http://www.bizjournals.com/tampabay/stories/2008/10/06/daily2.html)

says things like, “The first part is focused on home retention. The bank will launch a loan modification program for qualifying borrowers, moving them into fixed-rate, fully amortizing loans that they can afford.”

The article concerns itself with the settlement of the suit against Countrywide, but the approach could have broader applications. The article goes on to talk about “foreclosure relief” and “relocation assistance.”

This sounds like common sense to me, and, had it been done earlier, a lot of foreclosures might have been avoided. I hope this strategy might be voluntarily adopted by other banks.

And if it is adopted more widely, what will happen to the status quo as we now know it?
What will happen to the over supply of foreclosures?
Ominous indeed.