Making Modifications Look More Attractive
How are so many borrowers falling behind again after receiving a modification? Well as I have said before they aren’t modifying them enough and apparently there is another reason. The Wall Street Journal Reported that Thirty-eight percent of recent loan modifications resulted in increased payments for borrowers, according to an analysis by Alan M. White, a professor at Valparaiso University School of Law in Indiana, while 13% resulted in no change to payments. The study looked at more than 23,000 modifications between Dec. 26, 2008, and Jan. 25, 2009, involving subprime mortgages and Alt-A loans that were packaged into securities.