Massachusetts Homeowners Beware of Alarming Mortgage Default Rates

The number of homeowners defaulting on new federally subsidized mortgages is up at an alarming rate.

This is according to the US Department of Treasury and the Housing and Urban Development Department. For home loans in Massachusetts there were 5,635 “permanent modifications” with lower payments guaranteed for five years; those lower payments average $500 per month. 4024 of these reduced mortgages were in the Boston Metropolitan area. What was significant is the number of defaults, or “cancellations” as the Feds call them. Those numbers are up, unfortunately.
Notwithstanding all of the federal assistance, there are seven million homeowners behind on their mortgage payments. Boston homeowners should know that this relief will not prevent them from filing personal bankruptcy.