Many homeowners with loan mods face rate increases - LA Times
Beginning this year, those whose loan terms were modified so that the
interest rate dropped to as low as 2% will have to deal with higher
rates that could, in some cases, drive the monthly payment as much as
$1,724 higher. Why? Because "permanent" interest rate reductions under
the government's Home Affordable Modification Program were anything but.
Whether participants realize it or not, rate reductions last for only
five years... And the number crunchers at Black Knight Financial
Services point out that more than 40% of the 2 million borrowers who
benefited from modified loan rates still owe more than their houses are
worth. ''
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