The Real Deal Miami

No winners in foreclosures

January 12, 2009 10:49AM

The Hope Now program, a voluntary association made up of mortgage
lenders, said only about one-tenth of the delinquent loans in Florida
were modified in 2008. Nationally, 35 percent of loan modifications
reduced monthly payments, usually by cutting interest rates, while 20
percent left payments the same and 45 percent actually increased
monthly payments, according to a study of 106,000 subprime mortgage
loans by law professor Alan White of Valparaiso University in Indiana.
Stockholders in these lenders continue to suffer massive losses as
foreclosure rates climb, White wrote.