Mortgage Re-Default Rate Improves
That’s what happens when you start to modify mortgage payments down instead of up. I have been saying this all along. We will have to see how these loans perform over the long run but maybe Lewis Ranieri, who I wrote about in another post, is onto something and will make a lot of money especially since he is going to reduce principle. I think that is the real key if you are going to do modifications.
This could bode well for Fort Lauderdale and South Florida since we have been hit so hard by the housing mess. I guess we will just have to wait and see.
“Some 18.7% of loans modified in the second quarter of 2009 were at least 60 days past due three months later, according to the report, by the Office of Comptroller of the Currency and the Office of Thrift Supervision. That compares with a redefault rate of 30% or more after three months for loans modified in the previous four quarters.”