Loan Modifications Decline in April

The number of proprietary loan modifications fell in April according to HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors while foreclosure sales posted an increase for the second consecutive month.

Using a three month rolling average, a total of 57,922 homeowners received permanent, proprietary loan modifications in April, down 24.3 percent from the 76,522 loan modifications in March.

Of the proprietary loan modifications completed in April, eighty-three percent (48,349) included reduced monthly principal and interest payments, with 76 percent (43,799) receiving a reduction of more than 10 percent. In addition, ninety-three percent (54,072) of the loan modifications received fixed interest rate loans of five years or more.

Completed foreclosure sales jumped from 51,551 in March to 58,817 in April, an increase of 14.1 percent.

Meanwhile, monthly foreclosure starts dipped slightly from March to April, the second consecutive month that starts have declined following four months of increases. Foreclosure starts fell just 0.7 percent, declining from 115,582 starts in March to 114,768 in April.

Short sales fell by five percent from the previous month as a total of 26,667 short sales were completed in April compared to 28,085 in March.

The number of homeowners that were at least 60 days or more past due declined during the month, falling from 2.377 million loans in March to 2.166 million in April.

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