Thread: Modified Mortgages Defaulting in Droves

Modified Mortgages Defaulting in Droves

Tuesday, December 30, 2008 10:41 AM

By: Gene J. Koprowski

A new report from the U.S. Treasury shows that delinquencies and foreclosures of home mortgages continue to climb, but, most alarmingly, even modified loans are increasingly delinquent.

Mortgage modifications grew more quickly than other loss-mitigation strategies, as financial institutions worked with borrowers to keep them in their homes while minimizing financial losses.

The number of new loan modifications increased 16 percent in the third quarter to more than 133,000, according to the Treasury.

“One very troubling point is that, whether measured using 30-day or 60-day delinquencies, re-default rates increased each month and showed no signs of leveling off after six months and even eight months,â€

Cool! I go to refi the mortgage and the next day I lose my job. So where is a paycheck-to-paycheck person go to meet mortgage payments?

These mortgages were given to people that never could pay for them to begin with. You can discount them all day but the payments are still probably 50% more than they can afford.

Dixie

Thats why I posted it Dixie

Many Americans simply cannot afford to buy a home. Wages have been increasingly depressed over the last several years. There were no longer enough Americans left to give mortgages to that could afford them. So what did they do? They lent to those who could not afford a mortgage....which is an increasing pool of people these days.

But they wanted to keep the loan machine running so they cut corners. Pretty soon there were no more corners to cut. These people, most of them, simply cannot afford a mortgage. They are lucky to rent a small apartment let alone keep up with a mortgage. And now people are losing jobs so that makes an already bad situation...worse.

America needs her jobs back...and her wages increased....or else there is nowhere to go but down.