Fitch: Loans Receiving Balance Reductions Re-Default More
Though principal balance reductions seem to be all the rage in the loan modification world, they may not be as effective as simple principal and interest payment reductions, according to a report from Fitch Ratings.
The company said initial, but limited data for modifications with large balance reductions (20% or more) exhibited higher 60 day+ re-default rates than loans with decreased monthly mortgage payments of Read more
Wells Fargo Offering Principal Reductions to Wachovia Borrowers
As part of a broader plan to prevent foreclosures and reduce related losses, Wells Fargo has reportedly offered principal balance reductions to select Wachovia borrowers.
According to Bloomberg, letters were mailed to an unknown number of Wachovia borrowers who could be eligible for such a loan modification.
They are requesting proof of current income and a 2007 income-tax statement as a means to qualify Read more