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.
Author Bio:
Travis Saxton is the marketing and technology manager at REAL Trends. Prior to operating this arm for REAL Trends, Travis was the director of online services for a newspaper consulting company. He greatly enjoys working with real estate companies adapt new cutting edge strategies and perfecting their online presence and systems. He has experience in the following areas: Websites, SEO/SEM, CRM/Lead Generation Systems, Traditional Marketing and Social Media Marketing, Real Estate Technology Consulting.
Travis Saxton is the marketing and technology manager at REAL Trends. Prior to operating this arm for REAL Trends, Travis was the director of online services for a newspaper consulting company. He greatly enjoys working with real estate companies adapt new cutting edge strategies and perfecting their online presence and systems. He has experience in the following areas: Websites, SEO/SEM, CRM/Lead Generation Systems, Traditional Marketing and Social Media Marketing, Real Estate Technology Consulting.
