Report Shows Fewer Americans Re-default On Modified Mortgages

A large number of homeowners sought debt relief from unmanageable mortgage payments by applying for modification loans though either state of federal programs. However, many of those individuals who received lowered payments in the past quickly defaulted on their loans. But a new report shows that the most recent number of Americans who modified their loans are keeping up with their financial obligations.

According to the State Foreclosure Prevention Working Group - an organization composed of 12 state attorneys and banking regulators - the number of homeowners who fell into delinquency within a six-month period of modifying their loans fell from 31 percent in 2008 to 15 percent in 2009.

The number of homeowners most likely to go at least 60 days without making a payment also declined 50 percent from 2008 to 2009. Despite the positive news, the group said that foreclosures continue to drag down the economy and more attention needs to be placed on finding ways to prevent delinquencies.

According to the latest reports from RealtyTrac, more than 3 million Americans are expected to experience a foreclosure filing or notice by the end of the year.