Loan Modification Completions Higher in August

The number of completed proprietary loan modifications fell in August but total modifications were up due to a hefty increase in completed government loan modifications according to HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors.

Using a three month rolling average, a total of 67,275 homeowners received permanent loan modifications in August, up 6.3 percent from 63,298 loan modifications in July.

The number of completed proprietary loan modifications fell from 50,115 in July to 48,206 in August, a decline of 3.8 percent, while the number of loan modifications made under the federal government’s Home Affordable Modification Program (HAMP) increased from 13,183 in July to 19,069 in August.

Of the proprietary loan modifications completed in August, eighty-two percent (39,602) included reduced monthly principal and interest payments, with 71 percent (34,288) receiving a reduction of more than 10 percent. In addition, eighty-eight percent (42,387) of the loan modifications received fixed interest rate loans of five years or more.

Completed foreclosure sales increased from 58,930 in July to 59,064 in August, an increase of 0.2 percent.

Monthly foreclosure starts fell slightly from July to August, declining from 101,802 starts in July to 101,405 in August, a decline of only 397 starts.

Short sales fell by 10.6 percent from the previous month as a total of 23,183 short sales were completed in August compared to 25,942 in July.

The average number of homeowners that were at least 60 days or more past due over the previous three months declined from 2.239 million loans in July to 2.182 million in August.

Tags: HOPE NOW, private sector alliance, mortgage servicers, loan modifications, fixed rate mortgages, delinquencies, proprietary modifications, foreclosure starts, foreclosure sales

Source:
HOPE NOW

Reported by Shirley Allen