Home Loan Modifications: 30% of Those Made in 2009 Were Seriously Delinquent or in Foreclosure Process — Lessons Learned?
According to the AP news article posted on ABCNews.com, Mortgage Study Says Recent Modifications Work Best, the home loan modification process has been a rocky road for homeowner. Proof?
Thirty percent of modifications made in 2009 were seriously delinquent or in the foreclosure process, according to a second-quarter study released by the Office of the Comptroller of the Currency and the Office of Thrift Supervision.
In 2008, this figure was 45%;
This year so far, only 10% of who received a home loan were behind.
While it seems that things are slowly getting better, the argument could be made that home foreclosure statistics are just a reflection of the overall economy. According to a recent USAToday-Gallup poll, over 80% of Americans think that we are still in a recession, even though “experts” say that the recession is over — and has been since last year.
But as the average Joe who’s facing foreclosure will tell you, it’s hard to believe that the recession is over when she’s been hunting for a job for the last year or more, the bills are piling up, unemployment benefits have expired (or are about to expire) and there’s no relief in site.
Oy vey . . . perception is reality for lots of folks!
What This Means for the Home Foreclosure Market
When the economy is sluggish and people can’t find jobs, they fall futher behind. This means they are less eligible for help to stop foreclosure, which leads to even more losing their homes.
This also means that existing homes sit on the market longer, because they take longer to sell.
Furthermore, banks have tightened purse strings, so even those who may have jobs and want to buy a home can’t because they can’t qualify for home loans.
It’s a vicious cycle . . . that we all just have to bear with until the economy turns around.
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