Economics professor Nouriel Roubini told Consumer Reports that the way to stem home foreclosures is to reduce the mortgage principal of homeowners at risk of default to a level they can afford to pay (see video). The number of homeowners facing foreclosure surged again in March after lenders lifted temporary moratoriums and resumed legal actions against delinquent mortgage payers.

Roubini is a professor of economics at New York University’s Stern School of Business and chairman of RGE Monitor, an economic consultancy firm.

Roubini spoke recently with the staff of Consumers Union. This is the fourth in a five-part series.

Part 1: It’s not all bad news

Part 2: Surviving the next year

Part 3: Falling prices and deflation