50% of modified loans in default

by qrono 1. October 2009 10:58

The Obama administration's plan to tackle the foreclosure crisis got off to a slow start, but as of last month, about 360,000 borrowers, or 12 percent of those eligible, have signed up for three-month trial modifications.  However, the federal Office of the Comptroller of the Currency and the Office of Thrift Supervision (where did all these “Offices” come from?)  says that more than 50 percent of homeowners with loans modified in the first half of last year had missed at least two months of payments a year later.  The results were better among those who saw their payments drop substantially, with only one in three borrowers whose monthly payments were reduced by 20 percent or more falling behind again within a year.  The modifications are supposed to be extended for five years if the homeowners make their payments on time, but there’s no current data on redefaults within the plan. 

The report covers 34 million loans, representing more than 60 percent of primary home mortgages and, consistent with other reports, it showed borrowers are continuing to fall behind as job losses mount.  More than 11 percent of borrowers covered by the report had missed at least one payment as of June 30, up from 10 percent in April.

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Comments (4) -

Drusilla Canaway
Drusilla Canaway United States
12/13/2010 8:25:25 PM #

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Edwin Mccullough United States
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Aurea Kemmeries United States
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Moon Fondren
Moon Fondren United States
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