Home/HARP, Mortgages/Loan Modifications Fall in October

More homeowners received HAMP loan modifications in October but a larger decrease in proprietary loan modifications lead to an overall decline 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 49,990 homeowners received permanent loan modifications in October, down 5.1 percent from the 52,656 loan modifications completed in September.

The number of completed proprietary loan modifications fell from 39,772 in September to 33,607 in October, a decline of 15.5 percent, while the number of loan modifications made under the federal government’s Home Affordable Modification Program (HAMP) increased from 12,884 in September to 16,383 in October.

Of the proprietary loan modifications completed in October, seventy-four percent (24,929) included reduced monthly principal and interest payments, with sixty-four percent (21,584) receiving a reduction of more than ten percent. In addition, ninety-two percent (30,795) of the loan modifications received fixed interest rate loans of five years or more.

Completed foreclosure sales increased slightly from 50,622 in September to 51,468 in October, a gain of 1.7 percent.

Monthly foreclosure starts also increased from September to October, climbing from 92,760 starts in September to 101,808 in October, an increase of 9.8 percent.

Short sales were little changed from the previous month as a total of 18,902 short sales were completed in October compared to 18,786 in September.

The average number of homeowners that were at least 60 days or more past due over the previous three months declined from 2.080 million loans in September to 2.035 million in October.

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


Reported by Shirley Allen