Government programs not working, housing analyst says

Almost 2 million U.S. homes entered foreclosure in the first half of the year. Mike Larson, housing analyst with Weiss Research, and Jack McCabe of McCabe Research and Consulting spoke on CNBC about the ways in which rising unemployment and falling home prices are contributing to foreclosure numbers. McCabe said he sees no evidence that government mortgage modification programs are having a significant impact, and Larson said that’s partly because lenders are unwilling to cut the principal amounts that borrowers owe. Many banks are waiting to see whether any other government initiatives are forthcoming before they clear out foreclosed inventory, McCabe said.