Homeowners re-defaulting after getting aid
Do you remember Peggy the Moocher? the Obama voter in Sarasota, Fla., who exulted at a Barack Obama rally that this was “the most memorable time of my life.”
Why? As she told a Florida reporter on a YouTube video that has been viewed by hundreds of thousands:
“Because I never thought this day would ever happen. I won’t have to worry about putting gas in my car. I won’t have to worry about paying my mortgage. You know. If I help [Obama], he’s gonna help me.”
WASHINGTON (Reuters) - Recent data suggests that many borrowers who received help with mortgage modifications earlier this year tended to re-default on their payments, a top U.S. banking regulator said on Monday.
“The results, I confess, were somewhat surprising, and not in a good way,” said John Dugan, head of the U.S. Office of the Comptroller of the Currency, in prepared remarks for a U.S. housing forum.
“Put simply, it shows that over half of mortgage modifications seemed not to be working after six months,” he said.
