Modified Mortgage Default Rate is Sky-High
home mortgage defaults
The government has spent BILLIONS to lenders, loan serveries, and salaries of administrative staff in an effort to help troubled homeowners. Actually, it seems like a new or modified government real estate assistance program for ‘under-water’ homeowners is announced every month. So, what has all the effort and money gotten us?
The sad fact is the re-default rate within a year is likely to be 65% to 75% under the Obama administration’s Home Affordable Modification Program, or HAMP, according to a report to be released Wednesday by Fitch, a New York-based credit-rating firm. Read more 
Home Affordable Modification Program
Home Affordable Modification Program
Obama’s administration’s Home Affordable Modification Program (HAMP). Under the HAMP, borrowers and lenders work out an agreement to reduce the monthly payment on the property for a trial period of three months.
But even though more than 728,000 homeowners have qualified for HAMP nationally, just slightly more than 30,000 of these homeowners have successfully adjusted their loans.