Breaking news — HARP 2.0 is not going to take care of the housing crisis in the long run. The reason: HARP 1.0 failed in the short run.
Of the 4 million families with underwater mortgages backed by Fannie Mae and Freddie Mac, my guess is that 140,000 will actually refinance, and 140,000 will go into foreclosure. I did the math.
To set the stage: