Homeowners who modified loans are in trouble again

Unfortunately "The One" hasn't figured out yet that redistibuting the wealth will illicit similar results.

(AP:WASHINGTON) More than half of all homeowners who had their loans modified to make the payments more affordable in the first half of the year are already in default again, banking regulators said Monday.

The new data raise questions about whether government money may be better spent on creating jobs, rather than averting foreclosures, said John Reich, director of the federal Office of Thrift Supervision office at a housing industry forum sponsored by his agency.