Reinstated borrowers face higher risk of repeated mortgage default.
The study looked at the risk of people defaulting on their mortgage more than once, even after getting back on track from a first default. They found that the chance of a second default is higher than the first, especially in the first two years after the initial default. Surprisingly, factors that predict the first default don't work for predicting subsequent defaults. This is important for mortgage investors and servicers trying to prevent foreclosures.