By Paul Bellamy, J.D., Ph.D.

An effective response to the foreclosure disaster continues to elude the mortgage industry and public officials alike. Realistically, no one believes that all troubled homeowners can, or should, be saved from foreclosure. Lenders made far too many reckless loans and too many borrowers are in situations that are, sadly, beyond help.

But we can do much better at coping with this mess by rethinking the problem’s origin and striving to achieve more realistic results in responding to it. Reaching even scaled back goals would leapfrog over the public/private train wreck that currently passes for a solution to the foreclosure epidemic.

For years this problem gathered steam, while the servicing industry sat on its hands pretending that the system in place from 10 years ago would serve to meet the burgeoning crisis. Predictably, it hasn’t even come close.

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