Those facing foreclosure still need more help, according to multi-state coalition

Those facing foreclosure still need more help, according to multi-state coalition
Those facing foreclosure still need more help, according to multi-state coalition

Concerted efforts designed to prevent unnecessary foreclosures have reduced the amount of mortgage redefaults, says a group of state attorneys general and banking regulators. But the group also expressed concern that foreclosures continue to outnumber loan modifications.

According to a report issued by the State Foreclosure Prevention Working Group, a multi-state coalition, recent loan modifications are in fact performing better. Loan modifications may include reduced interest rates and other changes that result in smaller payments -- and in some cases, lower outstanding balances.

"Some analysts have predicted redefault rates as high as 75%, but today's report paints a brighter picture of the future," Washington Attorney General and working group member Rob McKenna said in a statement. "The newer modifications are holding up better, with fewer borrowers redefaulting."

Despite the progress noted in the report, McKenna says he's concerned that 6 out of 10 seriously-delinquent borrowers are not getting any help.