This New York Times story discovers a new wrinkle to the foreclosure crisis. Not only are lenders handing cash incentives to homeowners if they stay in their homes, but the cash is going to financially sound people at risk for so-called strategic default:

Many homeowners are so far under water on their mortgages that they’re tempted to walk away and rent elsewhere, even if they can afford the monthly payments on their current mortgage. Now, one company is trying to persuade banks to give those homeowners money in exchange for staying put.

On Monday, Loan Value Group L.L.C. of Rumson, N.J., introduced a program that it offers to lenders and mortgage servicers who want to identify borrowers most likely to engage in what’s come to be known as a “strategic default.” Once those lenders find the likely candidates, they can approach them pre-emptively with an offer of money that they would get later if they satisfy the terms of their loans.

Actually, the government is doing something similar through Making Home Affordable. That's the mortgage modification program that subsidizes banks so that they limit monthly payments to 31 percent of homeowner income. For each year the homeowner makes his newly lowered payments, he accumulates discounts that will come off the principal at the end of the life of the loan. It's an incentive for good behavior.

As for the private program flagged by the New York Times, at least it's not extracting flesh from the taxpayer. In fact, by keeping people in their homes, the payoffs might prevent these homes from becoming public burdens.