Mortgage Holders Less Likely to Dig Out of Delinquency

An increasing number of delinquent U.S. mortgage holders are failing to bring their loans current, in part because falling home prices leave borrowers owing more than their properties are worth according to Fitch Ratings.

The Fitch report surveyed securitized residential loans that were sold to investors and doesn’t include home loans purchased by government-run mortgage buyers Fannie Mae and Freddie Mac or mortgages kept on the books by lenders who originated them.

Almost a quarter of U.S. mortgage holders owed more than their homes were worth in the three months ended June 30 and the figure may hit 30 percent by mid-2010, Zillow.com said in a recent report. Home values dipped in the second quarter from a year earlier in almost 90 percent of the 161 U.S. metropolitan areas surveyed by Zillow.

Loan modification is possible if you are behind on your mortgage, in the process of foreclosure, owe more than the property is worth or if you feel that you may be entering into a foreclosure situation in the near future. While it is best to head this off from the start by getting a free foreclosure evaluation, it is still possible to prevent foreclosure with a loan modification even if the home is already in the process of foreclosure.

If you have questions about loan modifications, or need assistance in any mortgage crisis situation, contact a foreclosure loss mitigation company in your area. (Google that for your area).