Fitch Ratings Ltd. forecasts that most borrowers who get lower mortgage payments under a federal government program will default within 12 months.
Among those with loans that aren’t backed by any federal agency, the redefault rate within a year is likely to be 65% to 75% under the Obama administration’s Home Affordable Modification Program, or HAMP, according to a report to be released Wednesday by Fitch, a New York-based credit-rating firm. Almost all of those who got loan modifications have already defaulted once.
Diane Pendley, a managing director at Fitch, said the failure rate was likely to be high largely because most of these borrowers were mired in credit-card debt, car loans and other obligations.
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Until America realizes that the Principal of the Mortgage is the Heart and Soul, not the interest rate. If the Principal on the loan is not lower than the Current Market Value, you own nothing. I have the solution, I have had the solution for over two years but this site, Moe, the administrator of this site will not publish the answer to this Crisis. We are created the answer for over 277 homeowners but like Moe, just wants this crisis to remain. I am so sorry for you Moe, the home owners, which qualify for our process, our Private Money purchases their individual Mortgage Note. Then we write a New Mortgage Note, for 80% LTV. We have had ZERO, deafault and just more people are coming. We are the solution, the issue, there is not enough Private Money to save America.