Despite good news recently in the housing sector, the recovery is still sloggy. A couple of studies released recently have pointed to another festering problem that is certainly holding back a housing rebound: Most borrowers who go through loan modification will default again within 18 months.
Recidivism high for modified loans
American Banker cites a study by TransUnion that researched 600,000 loans that underwent modification from early 2008 to mid-2011 and found that 60% of borrowers became delinquent again within a year and a half, with 42% defaulting within the first year.
Read More: A Big Problem for Housing.