Foreclosures make more sense
Despite government efforts to stem the growing number of foreclosures by stepping up efforts to modify loans, economists have concluded it is more profitable for banks to foreclose than to modify loans.
From the Washington Post, Foreclosures are often in lenders' best interest.
"Policymakers often say it's a good deal for lenders to cut borrowers a break on mortgage payments to keep them in their homes. But, according to researchers and industry experts, foreclosing can be more profitable.
These financial calculations on the part of lenders pose a difficult challenge for President Obama's ambitious efforts to address the mortgage crisis, which remains at the heart of the country's economic troubles and continues to upend millions of lives.
Senior officials at the Treasury Department and the Department of Housing and Urban Development have summoned industry executives to a meeting Tuesday to discuss how to step up the pace of loan relief. The administration is seeking to influence lenders' calculus in part by offering them billions of dollars in incentives to modify home loans." (emphasis added)
Maybe a cash for clunkers type program direct to troubled homeowners would be a better way to go. 
Let's remind everyone to watch out for loan modification scams. From a blog post written in early June and a NY Times article. If you can't get loan relief from your lender, please DO NOT make the mistake of paying an individual or company who promises they can do it.
And in a somewhat related post, Jay Thompson, the PhoenixRealEstateGuy writes, I want to short sale my home! The banks not being fair!
To view listings of foreclosures available for sale throughout the Charleston real estate market, click here.