Home loan modifications: may just postpone default.

It estimated that 2.2 million home foreclosures were prevented by flexible lenders.

But counselors at several foreclosure prevention agencies in Minnesota, as well as several new studies,  with the vast majority of modifications still leaving homeowners with mortgages they can't afford. Counselors say many modified mortgages still have the same esoteric terms that sunk so many subprime borrowers: "interest-only" and "balloon" payments, as well as scheduled interest rate increases -- now called "stepped rates" instead of "adjustable rates."

For complete Minneapolis StarTribune article click here.

December data from the U.S. Comptroller of the Currency showed 36 percent of borrowers who had arranged new terms on their mortgages were in default -- or 30 days behind on payments -- within three months of their modifications. The figure was 53 percent by six months.