Not only that, but the US didn’t take advantage of the delay to solve the real problem underpinning the real-estate meltdown: unemployment.   If we wanted to spend tens of billions of dollars stalling foreclosures, then we should have simultaneously implemented pro-growth reductions in regulation and taxation to jump-start job creation and get people back into position to pay their mortgages — which would have been the only way to avoid the deluge of foreclosures that are coming or already are arriving.  Instead, we expanded regulation directly on employment (ObamaCare) and investment (Wall Street regulation) and have barely touched the millions of people who lost their jobs in the Great Recession.

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It's a little deeper than just no jobs. Many people that are working, have good jobs, and might want to buy a new home can't because they are upside down on their current mortgages. They're stuck.

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I don't understand how a couple that has the same jobs , same pay and same mortgage instantly are upside down in their mortgage when times get bad ?  Are they looking at property values and starting to get buyers remorse ?

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Because the house they owe 200K on is only worth 125K now if they try to sell and buy another house. So, since they can't eat the 75K difference, they stay in the house instead of buying another one.

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Because the house they owe 200K on is only worth 125K now if they try to sell and buy another house. So, since they can't eat the 75K difference, they stay in the house instead of buying another one.