Sunday, December 14, 2008

Mortgage Loan Modification - borrowers keep defaulting

Ouch! Borrowers Keep Defaulting After Mortgage Modification: Tech Ticker, Yahoo! Finance: "In the first half of this year, borrowers defaulted on modified mortgages at rates higher than almost every estimate. According to the Office of Comptroller of the Currency statistics released today, 36% of borrowers who had their loans modified in the first two quarters of 2008 re-defaulted after just 3 months. After six months, the redefault rate was roughly 56%. After eight months, 58% of borrowers re-defaulted.

'The results were surprising, and not in a good way,' OCC director Dugan said."

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