Wednesday, 10th of December 2008 at 12:00:30 PMRecently, the Wall Street Journal published an article on loan modifications and the high rate of defaults that are still occuring.This was a rather short article that reported on Office of the Comptroller of Currency Director John Dugan’s speech on the matter. He’s been following the numbers for the first and second quarter and found that the loans that were modified were surprisingly still defaulting at an alarming rate. After 6 months, 56% of the loans modified were in default.
The article doesn’t really speculate on the cause, but I suspect that the modifications were really not in the best interest of the homeowner. Not really helping them get out of a difficult situation, but instead just making matters worse.
If you are going to have a loan modified, be sure to have someone on your side that know what they are doing and can help you get into a situation where you can remain a homeowner, not prolong the problem and stress longer.
Thanks to Spencer Anglin for sending me this article.
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