Later modifications of mortgages fare better

8/24/2010

BOSTON — Homeowners who had mortgages modified recently are faring better than those who did so earlier in the housing crisis, according to a report released Tuesday, possibly debunking predictions of a huge wave of defaults to come.

The State Foreclosure Prevention Working Group warned of other troubling signs, however. The group of 12 state attorneys general and state banking regulators said that foreclosures still easily outpace the number of loan modifications.

Modifications usually lower monthly payments and reduce the odds of losing a home.

And nearly 63 percent of homeowners with seriously delinquent loans aren't taking part in foreclosure prevention programs, the group found.