Federal mortgage mod program sees 20% of homeowners fall back into default

The federal Making Home Affordable Program received a dismal review in the January Housing Scorecard from the Department of Housing and Urban Development, after it was revealed that roughly one out of every five mortgages modified in the plan falls back into default within a year. The program, aimed at helping homeowners avoid foreclosure, has seen limited success since it was unveiled in fall 2009, with few participants reaching a permanent mortgage modification, despite ongoing support from the Obama administration. And while around 20 percent of homeowners default after a year in the program, 15.9 percent are upwards of 60 days late on payments after nine months. TRD