Half of Modified Home Loans are in Default
More than 51 percent of all borrowers whose mortgage loans were modified in the first quarter of 2009 defaulted again by the end of the year, reported the Office of the Comptroller of the Currency and the Office of Thrift Supervision in a joint report.
Modifications are “clearly not working well and it’s not a surprise,” said Sam Khater, a senior economist at research firm First American CoreLogic. “It’s pointless to rewrite these loans because they’re underwater.”
Nearly 4.5 million foreclosure filings are expected in 2010, according to RealtyTrac, a seller of default data.
Source: Bloomberg, John Gittelsohn (03/25/2010)
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