Pace of mortgage mods continues to slow

By Mary Ellen Podmolik
Posted Nov. 18, 2010 at 4:56 p.m.

The number of Chicago-area homeowners who received permanent mortgage modifications rose last month, topping 25,000, but the pace at which consumers are being added to that group has slowed dramatically.

The government’s monthly accounting of its Home Affordable Modification Program showed that in the Chicago area, the 25,001 mortgages that received permanently lower payment terms was a 3.1 percent increase from September. On a percentage basis, that’s the smallest monthly gain of the year, and a dramatic drop from the high double-digit gains recorded earlier this year.

Data released Thursday by the Treasury Department also showed that the number of area consumers participating in trial modifications continued to fall, totaling 7,996 in October, down 7.4 percent from September.

Nationally, 34.6 percent of all trial modifications started since April 2009 have resulted in permanent modifications, but fallout from the program continues. In October alone, more than 7,100 permanent modifications were canceled.


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