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Mortgage Defaults Top 1M, Keep Rising

Even those with lowered payments are defaulting

By Emily Rauhala,  Newser User

Posted Dec 22, 2009 7:29 AM CST
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(Newser) – The number of troubled home loans continued to rise in the third quarter, despite the Obama camp's efforts to stem the tide by mortgage modification. For the first quarter ever, the number of homes in foreclosure with mortgages serviced by US banks topped the 1 million mark, the Los Angeles Times reports, as previously solid buyers fell behind. And more than half the homeowners whose payments were lowered defaulted again.

The effect of the White House's modification efforts so far has been small, with only 31,382 of 700,000 trial modifications offered in place as of November 30. But there is some good news: Homeowners with more recent modifications were doing better at keeping up, suggesting that people may finally be getting better terms on their renegotiated loans.

Mortgage defaults just won't go away.
Mortgage defaults just won't go away.   (AP Photo/Julie Jacobson, file)
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COMMENTS
Showing 3 of 6 comments
NewserHound
Dec 23, 2009 6:03 AM CST
The loan modification program is a joke. If you are out of work... You don't make enough. If you are working at an average corp. level you are making too much, even if you took a huge pay cut. And the banks, who are responsible for this mess, do nothing to help.
odowd80
Dec 22, 2009 3:37 AM CST
This is conservative, GOP policy in action, folks. Conservatives don't like the government getting involved in the private sector. So, Obama is trying to work with banks without getting involved in a big way. And look what happens...you get a ball-less ineffective policy that the banks thumb their noses at. Thank you private sector, you're doing a great job.
DontLikeYou___
Dec 22, 2009 2:47 AM CST
What is this? But the government said everything is fine, that the recession is over. Could it be.... they were lying to us?
US • Money

 
Barack Obama • real estate • housing market • homes • refinanced mortgages • President Obama • mortgage modification • loan modification • foreclosures

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