Why are so few temporary mortgage modifications turning permanent?
One reason may be the same one that a lot of bad loans were made in the first place. Borrowers can declare their income, and the banks are willing to grant temporary modifications based on those figures, without any evidence to confirm them.
But to make a modification permanent, the banks have to see proof of income, and the borrower has to make three monthly payments of the new lower amount. In most cases, those requirements are not being met…
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.