Loan Modifications Likely to Default Within A Year

Loan Modifications Likely to Default Within A Year

The Wall Street Journal (James R. Hagerty) reports that Fitch Ratings predicts that "most borrowers whose loans are modified under federal programs will likely default within a year." The Fitch predictions are based "on the performance of loans modified in the first quarter of 2009."

Fitch Managing Director Diane Pendley says "the failure rate is likely to be high because borrowers are saddled with credit-card debt, car loans, and other obligations they can't afford."

So you lose your house, they repossess your car, they cut up your credit cards, your credit is shot to hell, your job is in jeopardy - what now? Don't worry - it's OK! You will be able to stay in your house mortgage/rent free for 18 months before the bank takes possession. There are car dealers that will sell you a car with no money down and lousy credit. Who cares about credit - you will be able to buy another house in few years anyway (the banks never learn from their mistakes). Who needs a job - there are plenty of goverment handouts - just ask the people that have been milking the system for decades.

 For the full story please refer to:

http://www.realtor.org/rmodaily.nsf/pages/News2010061706?OpenDocument