Thursday, March 25, 2010

Half of all Modified Mortgages Still Default

That seems par for the course to me.

The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, the Office of the Comptroller of the Currency and the Office of Thrift Supervision said in a joint report today. The figure, which measures payments at least 30 days late, climbed to 57.9 percent for changes made in the prior 12 months.

I mean most of the time when you modify a mortgage the monthly payment usually drops by a few hundred dollars. So if a person could not afford to pay $2,500 a month for a mortgage they probably can't pay $2,200 a month either. So it might have been a good idea for this person to rent a different home instead. Oh well, more money burned by the government.

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