A foreclosed home is seen in Denver on April 9, 2009. Colorado foreclosure rates remain fairly flat as Nevada continues to have the nation's highest foreclosure rate, according to RealtyTrac, followed by Arizona, California, Florida, Idaho, Michigan, Illinois, Georgia, Oregon and Ohio. (UPI Photo/Gary C. Caskey) |
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Weeding out those groups, "the number of 'preventable' foreclosures may be far smaller than many commentators believe," a Boston Federal Reserve Bank report said.
The Boston Fed said nearly a third of homeowners who are two payments behind on their mortgages catch up with the payments on their own. Researchers at Moody's Economy.com said 20 percent of those three payments behind catch up on their own.
As the U.S. Treasury initiates a new round of discussions on helping stressed homeowners, weeding out "self-cures" and those who would fall into default a second time would sharply reduce the number of homeowners that would find relief through modified loans, Mark Zandi at Economy.com said.