Proprietary Loan Modifications Hold Steady in September

November 14, 2012 (Shirley Allen)

The number of proprietary loan modifications completed by the nation’s mortgage servicers remained at about the same level as the previous month 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 60,595 homeowners received permanent, proprietary loan modifications in September, up 1.9 percent from the 59,459 loan modifications in August.

Of the proprietary loan modifications completed in September, eighty-seven percent (52,785) included reduced monthly principal and interest payments, with 76 percent (46,118) receiving a reduction of more than 10 percent. In addition, eighty-seven percent (52,635) of the loan modifications received fixed interest rate loans of five years or more.

Short sales fell by more than 13 percent from the previous month as a total of 34,334 short sales were completed in September compared to 39,559 in August.

Monthly foreclosure starts fell drastically during September following August’s 14.2 percent increase. Foreclosure starts declined by 19.4 percent from August, falling from 187,941 to 151,461.

Completed foreclosure sales also declined, falling from 71,149 in August to 63,262 in September.

The number of homeowners that were at least 60 days or more past due increased during the month, climbing from 2.411 million loans in August to 2.466 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