More and more homeowners are turning to loan modifications to prevent foreclosure in their homes. According to the latest Office of the Comptroller of the Currency [OCC] and OTS Mortgage Metrics Report, the percentage of modifications increased to more than 78% of all new modifications, up from about 54% in the previous quarter. But despite the large number of modifications, it wasn’t enough to stem rising mortgage delinquencies. The report shows that over 50% of homeowners who had their loans previously modified have re-defaulted.
The report, which covers 34 million loans, totaling $6 trillion and representing about 64% of all first mortgages outstanding in the U.S., also showed the number of homes lost to foreclosures rose about 17% in the 2Q.