Real LI

The bad news on bad loans just keeps on coming.

On Monday, the State Foreclosure Prevention Working Group, composed of 11 states’ banking regulators and attorney generals, concluded that lenders and loan servicers have not developed long-term, sustainable tactics for staving off foreclosures.

The number of delinquent homeowners on track for help dropped from January to May, and 20 percent of those whose mortgage terms were renegotiated this year have now fallen behind once again, according to the group's report, based on data from 13 of the nation’s 20 largest servicers of subprime mortgages.

The report was issued on a day House lawmakers rejected the $700 billion bailout of Wall Street.

“While we focus this week on the historic legislative changes underway to address the liquidity crisis impacting the entire financial market, we cannot lose sight of the continued crisis facing homeowners across the country at risk of losing their homes," said Richard H. Neiman, superintendent of Banks for New York, which is part of the group. "We will never succeed in righting the economy and stabilizing the markets, unless all institutions, regardless of charter type, work together to implement sustainable solutions to avoid unnecessary foreclosures."