Once behind, mortgage holders less likely to catch up, Fitch finds
Homeowners who fall behind on their mortgage payments are much less likely to catch up now than they once were, according to a report from Fitch Ratings. The “cure rate,” or percentage of delinquent loans that go back to current payment status in any given month, fell to 6.6 percent in July for prime loans, down from an average of 45 percent between 2000 and 2006. For subprime loans, the cure rate dropped to 5.3 percent in July from 19.4 percent. If borrowers can’t catch up on mortgage payments, the foreclosure crisis is likely to continue. But because the foreclosure process is so backlogged, borrowers who fall behind on payments may be able to stay in their homes for a year or longer before being evicted.
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