Half of all loan modifications delinquent again within year

cnn ^ | 6/23/10 | Tami Luhby

[Nachum]

NEW YORK (CNNMoney.com) -- More than half of all homeowners with modified mortgages fell at least two months behind in their payments a year after the adjustment was made, according to a federal report released Wednesday.

However, the data also shows that modifications made in 2009, which emphasized reduced monthly payments, may perform better.

Only 40.7% of loans modified in the second quarter last year were delinquent after nine months, compared to 51.6% of those adjusted at the end of 2008, according to the report, published by the Office of Thrift Supervision and Comptroller of the Currency.

[Nachum]

How stimulating

[pogo101]

Unexpectedly!

[randog]

Borrowers also receive incentives for making timely mortgage payments.

Hmmmmm, paying people to pay their bills.

[April Lexington]

Huge mortgages on overpriced homes are hard to pay back...

[BitWielder1]

Doesn't matter. It's a wealth distribution scheme.
What happens to the wealth after it's been distributed is irrelevant.

[MrB]

Mortgages made to people who could not possibly pay them back is the cause of this...

Franklin Raines telling all the banks that he’d buy any loans they made to minorities, regardless of ability to pay it back is the cause of this.

[wbill]

Truly. People who are bad risks once, being bad risks again?

Completely unexpected!

....if you're a room-temp-IQ politician, that is....

[icwhatudo]

So the idea that these people were behind in payments because somehow they got tricked into signing into bad loans is proven to be BS.

They were deadbeats before, they are deadbeats after. Interest rates were never the issue.

Meanwhile, those of us who bought houses we could afford, who did not go to Disney or on a cruise, who made our payments on time, payed extra fees (points) to lock in lower interest rates.....get jack shiite.

[SnakeDoctor]

Yet another setback in the ongoing experiment to have broke people buy houses. When you buy more house than you can afford ... you find out just how much you can’t afford it.

Good grief.

SnakeDoc

[IllumiNaughtyByNature]

Just so I clear; People got something they couldn't afford, with little or no money down, the "unexpectedly" stop making the payments. SO, they get a second chance to keep the same unaffordable thing at a lower price and they opt not to keep making payments?

They had nothing invested, they have no incentive to stay.

[MrB]

You’re probably a white guy, and therefore don’t deserve “jack shiite”.

[Onelifetogive]

Half of all loan modifications delinquent again within year

Well duh! If people benefit from not paying, why would they pay?

[Onelifetogive]

Borrowers also receive incentives for making timely mortgage payments.

Yeah, but they get bigger incentives for NOT paying. I'm paying and NO ONE offered to modify my loan!

[driftdiver]

“Huge mortgages on overpriced homes are hard to pay back...”

Especially with 20% unemployment.

[traumer]

NAS !

(need another stimulus)

[driftdiver]

Well you do have the knowledge that you are perfect and your shiite don’t stink.

[240B]

You’re probably a white guy

I am Black. On every government form I fill out, I always list myself as Black.

Our nation is besieged. We are on the defensive. I am a Black Muslim radical. That seem to be the appropriate phrase to say these days.

On any government form, say that you are Black and things will go much better for you.

[WOBBLY BOB]

[niteowl]

Only 40.7% of loans modified in the second quarter last year were delinquent after nine months...

Holy cripes...Only 40.7%?? In the first nine months?! And that seems just hunky-dory with CNN?!

Here's a thought experiment. Walk into any lending institution and tell them that, if they give you a loan, they have a 59.3% chance that you are going to pay them back. Watch what happens.

Yet even more evidence of CNN being sycophantic shills for the Zero.

[Frantzie]

The problem is all this moral hazard of giving people mortgages who cannot pay for them drags everything and everyone down. It is nuking the middle class and parts of the upper middle class.