According to CNN Money this week, after reviewing the numbers from a federal report last week, the president's foreclosure program is losing its punch as the number redefaults after loan modifications continues to climb.
The latest report showed that nearly 20% of homeowners were at least two months delinquent nine months after receiving a permanent modification.
Analysts at Barclay's Capital said last month said 60% of homeowners may ultimately redefault.
The president's foreclosure prevention plan calls for servicers to reduce eligible troubled homeowners' monthly payments to no more than 31% of their pre-tax income. However, it has come under persistent fire for being slow to launch and for not helping enough people.
Our hope is that the number of successful and permenant loan modifications improves dramatically to keep people in their homes and help stablize our real estate market.
Nancy Moeller, CPA, Real Estate Broker
Seven Gables Real Estate
License #01727426
www.TheOCExperts.com
www.OCMarketUpdate.com (blog)
Direct: 714 276-7006
Fax: 714 917-2293
Blooming for home buyers.
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