Mortgage modifications up in Indiana
According to an Associated Press article, Loan Modifications are up in the state of Indiana which did as many as 100,00l Loan Modifications last year alone.
INDIANAPOLIS — A record number of Indiana residents are trying to save their homes from foreclosure by modifying their mortgages in deals that lower or delay their monthly payments.
During the third quarter of 2008, there were 5,000 mortgage modifications statewide – about four times more than in the same period the previous year, according to the Homeowners Preservation Foundation, which tracks the mortgage crisis nationally.
Once rare, mortgage modifications – or “mods” – have become a key tool to reducing home foreclosures, which topped 100,000 in Indiana alone last year. Foreclosures are a major contributor to the nation’s sinking home values.
For lenders, mods make financial sense because the average home foreclosure results in the loss of 55 percent of the balance for the owner of the mortgage, according to a 2008 study by Alan White, an assistant professor at Valparaiso University School of Law.
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