Based on today's news from the offices within the U.S Treasury, lenders who modified loans in the first quarter of this year to reduce payments for borrowers to help curtail foreclosures found that after six months 55.1% were now 30 or more days late on a payment and 36.9% were 60 days or more late with a payment.
Similarly, loans modified in the second quarter of this year after only three months 40.5% are now 30 days late on a payment and 21.4% are 60 or more days late on payments.
Base on this last set of data, it means 21% of the people could only make one modified loan payment and 40% of the people could only make two payments at their new rate until they re-defaulted on their loan.
Loan modification may work for some but the banks must take a serious look at who they are trying to help and apply the same criteria they do with new loans to the modification process. Otherwise, who are they kidding?
James Lockard
RE/MAX Properties
Office: 201-825-6600
Cell: 201-674-3114
Email: jlockard@remax.net
Website: www.BergenCounty-Homes.com
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