Study Says Foreclosures Outnumber Mortgage Modifications 3 to 1
The State Foreclosure Prevention Working Group (SFPWG), consisting of Attorneys General representatives from 12 states (including Florida), three bank regulators and the Conference of State Bank Supervisors, has released a report that shows the number of foreclosures since October 2007 has outpaced mortgage modifications by three to one.
The study examined delinquency and loss mitigation data from the largest subprime mortgage services in the nation, which showed that servicers completed 2.3 million foreclosures since October of 2007 and 760,000 mortgage loan modifications.
The study also showed that nearly 60 percent of homeowners who are more than two months’ behind on their mortgage payments have still not participated in any loss mitigation activity like loan modifications.
However, the study also said that the predicted wave of re-defaulters has not materialized, and that those borrowers who have received a mortgage modification are less likely than expected to default again.
For those receiving mortgage modifications during 2009, the data showed that 40-50 percent are less likely to be seriously delinquent with their payments six months after the modification. More recent modifications are performing better than earlier modifications, and those modifications that reduced the capital balance of the loan significantly have one of the lowest rates of default.
If you are underwater on your mortgage and want to avoid foreclosure, contact our Jacksonville Florida foreclosure defense law firm.
Greg Gilbert
Keith Maynard
