Posted on Wednesday, December 8, 2010
New data from HOPE NOW shows that the industry completed more than 1.5 million loan modifications for at-risk homeowners from January through October of this
year. That translates to an average of 154,000 homeowners per month who have been able to remain in their homes with an affordable loan modification solution.
It’s a notable accomplishment, but the report makes it clear that there’s far more work to be done. HOPE NOW says there are currently 3.4 million homeowners 60 or more days behind on their mortgage payments.
The reported data for October shows mortgage servicers completed approximately 101,000 proprietary loan modifications for homeowners and 24,000 Home Affordable Modification Program (HAMP) modifications during the month, for an estimated total of 125,000.
Of particular note in October’s data is the effect foreclosure delays and the temporary freezes initiated by some servicers due to the robo-signing scandal had on the delinquency and foreclosure numbers for the month.
Specifically foreclosure starts and sales dropped to 205,000 and 69,000, respectively. That’s down from 245,000 foreclosure starts and 118,000 foreclosure sales the month prior.
“There were anomalies in the October data that affected 60 day plus delinquency, as well as foreclosure, metrics which we believe may be largely attributed to widespread foreclosure delays across the country,” said Faith Schwartz, senior adviser for HOPE NOW.
“Despite these irregularities the mortgage industry’s efforts to keep homeowners in their homes and offer viable mortgage solutions continues to show strong results each month. Far more homeowners are receiving workout solutions — including loan modifications — than are going to foreclosure sale each month,” Schwartz said.
©2010 DS News.