Time to bite the bullet: Foreclosure is inevitable for many homeowners

The Wall Street Journal reports today that just as the Obama housing rescue plan gets underway, many banks are increasing their number of foreclosures. JPMorgan (JPM), Wells Fargo (WFC), Fannie Mae (FNM), and Freddie Mac (FRE) have all ended their self-imposed moratoriums on foreclosures and are moving aggressively to deal with failing accounts.

According to a study commissioned by the Boston Federal Reserve, unemployment and falling real estate values are larger factors in foreclosures than interest rates. If this study is correct, then foreclosures and evictions are almost a certainty for many families. After all, if a homeowner is simply unable to make payments on a home, then refinancing, lowered interest rates, and other supports are merely stopgaps. Taken another way, they become painful delays, dragging out a torturous process.