The pushback stems from a belief that people might actually opt for foreclosure believing they’ll get a better deal.
The two sides probably need to stem their differences before the new president is sworn into office. Time is of the essence.
Foreclosure filings rose 71 percent in the third quarter to a record 765,558, according to RealtyTrac.
To make matters even worse, borrowing costs on hundreds of thousands of adjustable-rate mortgages are expected to reset higher in the coming months.
The Quest For Solutions
"We need to think of housing as a long-term crisis," explains Robert Shiller, Professor Of Economics Yale University. "As result we need to think about how to improve the financial system. There are three things to address."
1) Improving the information structure
2) Expanding our risk markets
3) Improving retail financial institutions
" In other words, the crisis is due to our failure to apply the principles of finance to risk management," he says. "That needs to change."
I’m also a little anxious about the housing crisis, admits Pete Najarian. I think there’s a long road ahead.
For more on Shiller's solution check out his book Subprime Solution: How Today’s Global Financial Crisis Happened and What to Do about It
Got something to to say? Send us an e-mail at email@example.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to firstname.lastname@example.org.
Trader disclosure: On Nov. 4, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (BNI), (MSFT), (CY), (UUP); Macke Is Short (TM); Adami Owns (AGU), (BTU), (C), (GS), (MSFT), (INTC), (NUE); Pete Najarian Owns (MSFT) And Is Short (MSFT) Calls; Pete Najarian Owns (SBUX) Puts; Pete Najaria Owns (YHOO) And Is Short (YHOO) Calls; Seymour Owns (AAPL), (BAC), (MER), (SBUX), (BAC), (EEM); Seygem Asset Management Owns (EEV)
Charles Schwab Is A Sponsor Of "Fast Money"
GE Is The Parent Company Of CNBC
CNBC.com with wires