58% of Loan Modifications have Re-Defaulted...

Did you see 60 Minutes last night? Not only is Barney Frank a hypocritical liar, he is a slob.

yeah, I posted about it last night... but I think many saw that coming.

I think the big info now is why bother spending money to "save" those mortgages, when they're going to tank anyway.

Like a pheonix... things must burn, baby burn... we don't need no water... let......

only then can the pheonix rise from the ashes.. .ancient chinese proverb about NYC RE :)

What do you consider ashes? 40%? 50%? 90%?

First burn definitely 50% from high, second scorching will result from (1) GM bankruptcy,(2) Unemployment 12%, (3) NYC RE taxes goes through roof for 2 years (4) Unit owners finally admitting that rental rates will not increase and market will not improve dump units into market.... then malraux and I will wait for banks to sell portfolios of debt at $.25 on the $1.00, we will do the unpleasant job of kicking out the "RENTERS... i.e. unit owners" or letting them stay at a reduced rent to yield 10%... definitely see special situations where 90% can occur especially on the 2007 units that were done at above $1,500psf. Happy hunting everyone... and by the way the Cholera epidemic still rages and I don't feel sorry for the banker that can't afford the $10K mortgage... just my moral compass :)

The reasons why loan modifications fail is because they usually don't change the principal or the interest rate - they grant a temporary reduction and add it back onto the principal. Only now are SOME companies starting to change the interest rates permanently, but I don't know of any that are lowering the principal.

The answer is the same as it is for any other asset class - bankruptcy. That you can keep your vacation home in bankruptcy but not your primary residence is to me insane.