65% Of Modified Loans Will Default Again, Study Predicts By Ben Popken, 9:49 AM on Mon Jun 1 2009 http://consumerist.com/5273800/65-of-modified-loans-will-default-again-anyway-study-predicts Many homeowners that couldn't afford their home the first time around, can't afford it the second or third, a new study finds. Fitch Ratings predicts that 55-65% of home loans getting modified will end up at least 60 days behind within a year. The percentage is even higher for those in subprimes, with 60-day delinquincies predicted at 65-75%. "Loan modifications hold clear value for many homeowners provided the modified payments are sustainable, but more often than not, reducing the home payments to an affordable level may not be enough to rescue borrowers who are overextended on other credit and expenses," said Diane Pendley, a managing director at Fitch. Many modified mortgages will default again, Fitch Ratings projects [LAT] (Scan: SyndProd)
ABC's Extreme Home Makeover built a family a Million dollar home, and they blew it. Mtg'd it for $450,000.00, and just totally blew it. ABC even gave these people a trust fund to pay for the taxes for 25 years! They had a beautiful house, and forked up. Some folk just never learn. Ever. These 2 parents committed child abuse in my eyes, cuz they put their kids in danger of being HOMELESS! http://www.accessatlanta.com/entert.../2008/07/25/extreme_makeover_foreclosure.html