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US Economy loan modification and Foreclosure news
Foreclosures are mounting, crushing hopes of an us home recovery. Lenders can, but don't, prevent foreclosures by modifying loans. Yes, this will further hurt their bottom line, but record foreclosures - 360,149 in July - are only making things worse. Banks need to step up to the plate and find a way to help people save their homes.. Click here to read more about why banks must stop foreclosures.
Making Home Affordable Plan
Much has been made of the 2% base rate included in the guidelines for the Obama Administration's "Making Home Affordable" plan. It's been well documented that the plan is off to a very slow start with current estimates of approximately 50,000 loan modifications in process. Less talked about, at least so far, is that the 2% headline interest rate of the plan may be unavailable to most homeowners seeking loan modifications that follow the plan guidelines. Click here to read more about the Making Home Affordable Program.
Loan Modification
Fitch Ratings has put out a report examining the effectiveness of loan modifications in terms of keeping homeowners out of foreclosure. Their findings make the initial reports of massive failure rates seem like the good old days. Reports that had come out earlier in year found that fifty percent of modifications done in the first half of 2008 had gone back into default by year-end. The new study by Fitch estimates that between 65% and 75% of modified subprime loans will become 60-days or more delinquent again within a year of the loan modification. Click here to read more about Loan Modifications.
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