56% of mortgages modified in 1st quarter are in redefault in 3rd quarter!

So says Journal of Accountancy on 12/22/2009.

Do not buy property just to see a loss in value the very next day!

 

and think of all our tax money and new debt they threw at this

 

Wilburbear, that is % numbers from 2008 quarters of the President Bush "Hope Now" modification program, not President Obama modification program.

President Obama modification program is different because the principal can go DOWN with faithful monthly payments. Obama plan will reduce as low to 2% interest rate on the morgage for 5 years to help homeowner have lower payments, and stop foreclosure. Then after 5 year it only can go 1 point a year BUT no higher than the interest rate of the day when the loan is modified. This is to bring some people to 31% debt to income.

 

Too bad people who paid their mortgages faithfully (or, gasp, rented and saved) can't get this deal.

 

If some people make all the payment faithfully but have ARM that soon will go up, they can do this modification possibly.

This "deal" is not so great. You want to be this people who buy from the top of the market, then owe more than the house is value? Now they modify and maybe have to go 40 year morgage with the principal forbearance?
Is good to keep them in the home, but they are slave to the bank now. This is for benefit to the bank. No forclosure/loss for the bank, AND cash every month for a long time.

 

Well, most people usually want to KEEP their home...you can show them the numbers all you want, but their emotional ignorance says they'd still keep it...