Loan Modifications Fall Twenty Percent

Completed loan modification for both proprietary and government-backed loans fell by twenty percent in September 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 52,656 homeowners received permanent loan modifications in September, down 20.6 percent from the 66,334 loan modifications completed in August.

The number of completed proprietary loan modifications fell from 47,265 in August to 39,772 in September, a decline of 15.8 percent, while the number of loan modifications made under the federal government’s Home Affordable Modification Program (HAMP) declined from 19,069 in August to 12,884 in September.

Of the proprietary loan modifications completed in September, seventy-six percent (30,102) included reduced monthly principal and interest payments, with seventy-one percent (28,313) receiving a reduction of more than ten percent. In addition, ninety-three percent (37,168) of the loan modifications received fixed interest rate loans of five years or more.

Completed foreclosure sales fell from 58,148 in August to 50,622 in September, a decline of 12.9 percent.

Monthly foreclosure starts also fell from August to September, declining from 98,591 starts in August to 92,760 in September, a decline of 5.9 percent.

Short sales fell by 17.4 percent from the previous month as a total of 18,786 short sales were completed in September compared to 22,748 in August.

The average number of homeowners that were at least 60 days or more past due over the previous three months declined from 2.089 million loans in August to 2.080 million in September.

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