The Real Deal Miami

Borrowers re-default after modification

December 08, 2008 02:44PM

Many borrowers who modified their mortgages earlier this year re-defaulted on their payments, according to recent data from
institutions including Bank of America, Citibank and JPMorgan Chase.
Nearly 36 percent of borrowers whose mortgages were restructured in the
first quarter re-defaulted, according to the data. The rate of
re-default increased to 53 percent six months after restructuring and
58 percent eight months after restructuring. John Dugan, head of the
U.S. Office of the Comptroller of the Currency, said the results were
surprising and offered no explanation for them. Florida had the nation’s highest borrower delinquency rate in the third quarter.