Modifications Decline Significantly; Foreclosure Sales Rise

Modificationsrnunder the HOPE NOW alliance declined significantly in April, duernentirely to a decline in the number of proprietary transactions. HOPE NOW said its members completed 69,888 loan modifications duringrnthe month, down from 88,485 in March. Modifications completed underrnthe Home Affordable Modification Program (HAMP) actually increasedrnslightly, from 11,913 to 11,966 but proprietary modifications fell torn57922 from 78,522.</p

</p

Ofrnthe proprietary modifications in April, 93 percent included interestrnrates that were fixed for at least five years, 83 percent featuredrnreduced principal and interest payments, and for 76 percent thatrnreduction was greater than 10 percent. </p

SincernHOPE NOW was begun as a voluntary, private sector alliance ofrnmortgage servicers, investors, mortgage insurers, and non-profitrncounselors in 2007 its members have completed 6.39 million loanrnmodifications, 5.2 million under proprietary auspices and 1.19rnmillion through HAMP (which began in 2009).</p

Foreclosure sales increased</bfrom 52,000 in March to 59,000 in April, a 14 percent escalation. Foreclosure starts increased by 1,000 to 116,000. Short salesrnreached a total of 1.26 million since HOPE NOW started tracking themrnin 2009 with an additional 27,000 short sales. There were 28,000 inrnMarch. </p