Underwater Loans Drop

HousingWire tells MHProNews the shadow inventory dropped by 1.2 million troubled mortgages in the first six months of 2012. Although those numbers could double by the end of the year, four million underwater loans would remain, down from a high of six million in 2010. According to JPMorgan Chase, of the 1.2 million, 335,000 were short sales, 420,000 were loan modifications and 470,000 in REO (real estate owned) sold. In addition, Chase says the $25 billion settlement with the five largest banks could result in 100,000 loan modifications averaging $100,000 reductions for each loan. Only 7,000 were finalized through June, but the banks say they increased efforts in June. As we reported in a previous story Sept. 10, 2012, the payments for one couple who received a loan modification dropped $229 a month.

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