The real bailout on foreclosures

[punjabigyrl]

Here is the rescue for all those folks facing a foreclosure. The loan is called Modified loan where the first 5 years you get 2% interest, the next 5 years of 4% interest and the next 20 years of 6% interest. Does anyone see more trouble with this?

 

[lkrbrady1]

Here is the rescue for all those folks facing a foreclosure. The loan is called Modified loan where the first 5 years you get 2% interest, the next 5 years of 4% interest and the next 20 years of 6% interest. Does anyone see more trouble with this?

correct me if i'm wrong, but isn't this a major reason for the mortgage mess?

 

[punjabigyrl]

Yes it is. And to keep troubled home owners in thier house they get the same thing called a "MODIFIED LOAN"

 

[Tilted]

Here is the rescue for all those folks facing a foreclosure. The loan is called Modified loan where the first 5 years you get 2% interest, the next 5 years of 4% interest and the next 20 years of 6% interest. Does anyone see more trouble with this?

Yeah, extending too much credit, and extending it to people who couldn't afford it, played a large role in creating the problems we are experiencing.

Re-default rates (i.e. the rate of delinquency AFTER loans are 'modified') are ridiculous and appear to be increasing. The OCC reported that the (30+) re-default rate for 1st quarter 2008 modifications was 55% after 6 months.

 

[MDFamily1017]

correct me if i'm wrong, but isn't this a major reason for the mortgage mess?

agreed