Thursday, July 22, 2010

South Florida Loan Modification Update

The Sun Sentinel reported yesterday that the South Florida metro areas had more loan modifications in June than any other cities in the United States. Statewide, Florida is second only to California in the total number of loan workouts.

The Miami-Ft. Lauderdale area had 35,621 loan modifications in June, which is approximately 3,000 fewer than May's numbers.

The Orlando area had 15,130 in June which was about 900 fewer than May. If you add the June figures for the two areas together they account for 6.7 percent all of national activity. In comparison, Los Angeles had 6.5 percent, New York had 6 percent and Chicago had 5.1 percent.

Bank of America has originated the largest number of permanent modifications with 72,232 nationally; Chase reported 54,722.

Of the more than 100 lenders that get tax incentives to reduce payments only $132 million has been spent out of a potential $75 billion.

It is speculated that the low numbers may reflect the borrower's weariness and frustration with the paperwork and the fact that they have to prove their income to receive the loan modification. With so many people out of work or on reduced wages, the Making Home Affordable programs may continue to have limited effect.

We need jobs.

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