Posts Tagged ‘modifications’

Post Report – Loans aren’t being modified

August 5th, 2009

Federal mortgage help underutilized

I guess the Economist article may shed some light on why the modifications aren’t occurring. 

Thing is, there’s a lot of risk in modifications.  There’s the direct loss as well as the opportunity cost.  I reckon there’s even the possibility that everyone will want one.

On the other hand the Fed only wants this done if you’re down 60 days – two payments.  At that point the problem will start solving itself through more traditional avenues.

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