"NEW YORK (CNNMoney.com) -- Most borrowers who have had their mortgages modified through a government-sponsored program will redefault within 12 months, according to a report Between 65% and 75% of loans that are modified through the Home Affordable Modification Program but not backed by the federal government are likely to go bad, according to a report released Wednesday by Fitch Ratings, a N.Y.-based credit-rating agency. The main reason these borrowers continue to struggle is that HAMP does nothing to solve the rest of their debt problems, the report added. "Many of these borrowers still have very heavy levels of other debt," said Diane Pendley, a Fitch managing director, "auto loans, credit cards and other expenses. The HAMP modifications reduce housing expenses down to 31% of income but do not touch these other obligations." Failing mortgage modifications - Jun. 16, 2010 Is Diane Pendley an idiot or does she just say stupid things? The HAMP loanes were NOT SUPPOSED to help people with other debt problems!! Was the program worth the $$ spent on it? Well, if 75% of those who received assistance defaulted, then I'd say it was a miserable failure. Now, hopefully it actually helps the other 25% stay above water so they can keep their homes. Too bad they couldn't have screened out the other 75%!!