Loan Modifications Continue to Decline

The number of homeowners in need of a loan modification continued to dwindle in November 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 44,320 homeowners received permanent loan modifications in November, down 11.3 percent from the 49,990 loan modifications completed in October.

The number of completed proprietary loan modifications fell from 33,607 in October to 31,324 in November, a decline of 6.8 percent, while the number of loan modifications made under the federal government’s Home Affordable Modification Program (HAMP) declined from 16,383 in October to 12,996 in November.

Of the proprietary loan modifications completed in November, seventy-four percent (23,284) included reduced monthly principal and interest payments, with sixty-eight percent (21,370) receiving a reduction of more than ten percent. In addition, ninety-three percent (29,143) of the loan modifications received fixed interest rate loans of five years or more.

Completed foreclosure sales declined from 51,468 in October to 41,295 in November, a decrease of 19.8 percent.

Monthly foreclosure starts also declined from October to November, falling from 101,808 starts in October to 84,238 in November, a decrease of 17.3 percent.

Short sales also experienced a sizeable drop from the previous month as a total of 14,783 short sales were completed in November compared to 18,902 in October.

The average number of homeowners that were at least 60 days or more past due over the previous three months declined from 2.036 million loans in October to 2.025 million in November.

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