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Publication Date

March 2010



Ford Foundation

As the foreclosure crisis continues to impact communities across the country, various efforts have  been made to provide direct aid to homeowners. Many borrowers have been seeking loan modifications in efforts to remain in their homes. However, an alarming proportion of modified loans fall back into delinquency? Why are some loan modifications successful, while others result in redefault?

A research brief reports on a study by Roberto Quercia, Lei Ding, and Janneke Ratcliffe of a large sample of recently modified nonprime loans and their findings that the type of modification matters when trying to prevent redefault.

Topics(s): Default, Bankruptcy, & Foreclosure, Housing Policy, Mortgage Finance