Redefaults On Modified Loans

I would love to know the percentage of loans that were modified that left a borrower with only $300 or so per month in disposable income.  This is the real problem.  They are modifying them enough.  “Yesterday’s Journal reports that Fitch Ratings looked at mortgages bundled into securities between 2005 and 2007 and managed by some 30 mortgage companies. Fitch found that a conservative projection was that between 65% and 75% of modified subprime loans will fall delinquent by 60 days or more within 12 months of having been modified to keep the borrowers in their homes. This is an even worse result than previous reports by federal regulators. Even loans whose principal was reduced by as much as 20% were still redefaulting in a range of 30% to 40% after 12 months.”

http://online.wsj.com/article/SB124338503008056785.html