Those in the mortgage business are becoming familiar with this word. In a report released today by the Office of The Comptroller of the Currency, more than half of the mortgages that were modified at the beginning of 2008 fell back into default within six months. That's right, more than half of the people who had their mortgages adjusted to make them more 'affordable' are now in re-default, meaning they are more than 30 days behind on payments.
“After three months, nearly 36 percent of the borrowers had re-defaulted by being more than 30 days past due. After six months, the rate was nearly 53 percent, and after eight months, 58 percent,” the Comptroller said in remarks at the Office of Thrift Supervision’s National Housing Forum today. These borrowers might have had their interest rates lowered, principal balances reduced, or a number of other measures taken to lower their payments, but these efforts seem to have delayed the inevitable. Read the full release and see for yourself.
Back to the drawing board?
“After three months, nearly 36 percent of the borrowers had re-defaulted by being more than 30 days past due. After six months, the rate was nearly 53 percent, and after eight months, 58 percent,” the Comptroller said in remarks at the Office of Thrift Supervision’s National Housing Forum today. These borrowers might have had their interest rates lowered, principal balances reduced, or a number of other measures taken to lower their payments, but these efforts seem to have delayed the inevitable. Read the full release and see for yourself.
Back to the drawing board?
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