HOPE NOW Nears 7 Million Modifications and Short Sales

by devteam November 6th, 2012 | Share

Loan modifications and other foreclosurernprevention measures directed at privately owned mortgages continued at a highrnrate during both September and the entire third quarter of 2012.  HOPE NOW, the voluntary, private sectorrnalliance of mortgage servicers, mortgage insurers, and non-profit housingrncounselors reports the completion of 219,333 loan modifications during the thirdrnquarter.  Proprietary modificationsrnnumbered 186,057, a 41 percent increase over the second quarter when there werern131,556 and 15 percent more than the 161,764 completed in the third quarter ofrn2011.  There were another 33,276 modificationsrncompleted through the government sponsored Home Affordable Modification Programrn(HAMP) during July and August 2012. rnSeptember figures for HAMP modifications have not yet been released.   </p

For the month of September, therernwere 60,595 proprietary loan modifications. This was a 2 percent increase overrnthe 59,459 modifications in the month of August. </p

Since 2007 the mortgage industry hasrncompleted 5.82 million total permanent loan modifications for homeowners. Ofrnthose loan modifications, 4,739,109 were proprietary programs and 1,076,747rnwere completed under HAMP not including September figures which are not yet in.rn </p

There were 110,153 short sales completedrnthrough the program in the third quarter, up 3 percent from the second quarterrnand 16 percent higher than the 94,560 completedrnin the third quarter of 2011.  There havernbeen 1.05 million short sales arranged through HOPE NOW since it began in 2009rnand the combination of loan modifications and short sales has brought the totalrnnumber of permanent, non-foreclosure solutions to approximately 6.87 million.</p

Foreclosure starts in the thirdrnquarter of 2012 were 16 percent lower than a year earlier, 503,995 vs. 597,447rnand foreclosure sales were down slightly to 197,937 from 199,383.  Delinquencies of 60 days or more declined 12rnpercent to 2.45 million vs. 2.80 million. rn</p

Faith Schwartz, Executive Directorrnof HOPE NOW said of the program’s recent results, “The combination of loanrnmodifications and short sales solutions completed by mortgage servicers in thernthird quarter of the year, totals over 329,000. That compares to approximatelyrn198,000 foreclosure sales during the same time period.</p

“Based on the results of the third quarterrn2012 data, there remains a strong focus on foreclosure prevention solutionsrnwhich continue to outpace the loss of a home through foreclosure. It cannot bernstated enough that mortgage servicers have more tools than ever before, viarnproprietary and government programs, to offer the most viable and realisticrnoptions for at-risk homeowners.’

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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