The success rate for financially troubled homeowners who have had their mortgages restructured is starting to improve, new data show.

Some 18.7% of loans modified in the second quarter of 2009 were at least 60 days past due three months later, according to the report, by the Office of Comptroller of the Currency and the Office of Thrift Supervision. That compares with a redefault rate of 30% or more after three months for loans modified in the previous four quarters.

Many earlier modifications were unsuccessful in part because they often resulted in a higher or unchanged monthly mortgage payment. Roughly 80% of loan workouts in the second and third quarters of 2009 resulted in a reduced payment, according to the study. Loans that decreased monthly payments by 20% or more had the lowest redefault rates. More here.