The U.S Government Accountability Office (GAO) recently released a comprehensive report on the effectiveness of a variety of types of foreclosure mitigation efforts. About 4 million single-family mortgages were modified in the U.S. between 2009 and 2011 to help borrowers avoid foreclosure.
About 13% of mortgages nationwide are at an increased risk of foreclosing in the future according to the report. Increased risk can be due to delinquency status, loan to value ratio, local unemployment rate, interest rate, borrower credit score, or combinations of conditions.
The report identified steps that could help more homeowners avoid foreclosure while minimizing federal expenditures. In addition, it catalogs the extensive toolkit of foreclosure mitigation tools available and provides information on the effectiveness of each tool in reducing re-default.
Learn more about the report at GAO's website or take in the live chat with the report's director, Mathew Scire.