The Obama administration's foreclosure prevention program has more canceled modifications than active ones, according to a Treasury Department report released Monday.
It said that nearly 700,000 loan modifications begun under the program had been canceled through Sept. 30, well above the 466,708 permanent modifications that remain active, according to Treasury data.
The program has been plagued by redefaults. A permanent modification is canceled when a borrower misses three or more consecutive monthly payments.
Of the modifications that became permanent in the first quarter of 2010, 9.8% were 60 or more days delinquent after six months.
At the same time, the number of delinquencies continues to rise. As of Aug. 31, about 3 million loans were delinquent.
