Homeowners Who Received Mortgage Modifications Are Defaulting Again
December 10th, 2008Via: OC Register:
In my previous post, I wrote that more than half of homeowners who got a change to their mortgage to make it more affordable, started missing payments again within six months of the loan modification, according to John Dugan, the nation’s Comptroller of the Currency.
Those were for loans modified in the first quarter. Loans modified in the second quarter are going delinquent again at a faster pace, beginning about two months after getting a modification. For example, within five months more than half the loans modified in Q2 went delinquent again vs. it taking six months for more than half of loans modified in Q1 to redefault.
Research Credit: Lagavulin
