A 30-day late payment doesn't make foreclosure unavoidable, Mr. Paulson

Treasury Secretary Henry Paulson was out defending the Hope Now plan yesterday, saying it's designed to prevent "avoidable foreclosures."

But the Bush administration's proposed plan doesn't relax rules for anyone who has gone 30-days late on their mortgage. And as anyone who has been there knows, 30 days late is a long way from foreclosure, which usually doesn't start until a payment has gone 90 days late. And even then, there can be months of legal wrangling still ahead.

In fact, in many cases, if you have a substantial amount of equity, you may even be able to refinance after going 90 days late.