Slowdown in loan mods means foreclosures unavoidable
A slowdown in loan modifications means loan servicers will actually have to begin foreclosing on the many borrowers unable to keep up with their mortgage payments, instead of kicking the can down the road, according to a new report released today by Fitch Ratings.
Last month, just 36,500 loan modifications were completed, well below the peak of 86,500 back in April 2009.
And while efforts by both Hope Now and HAMP resulted in about 1.75 million modifications in 2010, foreclosure sales exceeded the one million mark.
On the surface it sounds pretty good, but you have to take into the account the many loans hundreds of days behind on payments, but not yet foreclosed.