Yes, you read that right. Indications are that 50% of those that get a loan modification are STILL defaulting. Check out the report from Diane Olick. The reasons are many. The booming unemployment rate is surely catching a few people. But more probably realized that they are signing up to be renters for 30 years with many of these new deals. And they are paying high rents as compared to actually renting a comparable home. I'm sure a few people were just using the rework process to buy more time in the home. Think about it, if you haven't been paying a mortgage for 9 months and then get a work out, you can then default again and get another 9 to 12 months of free rent. Sucha deal!
Also in the report, distressed sales (foreclosures and shorts) are now running 45% nationwide (although in the IE they are 70%).