The banks have finished 1.13 million long term loan modifications for at-risk home owners so far in 2010, based on information released Wednesday by HOPE NOW, the private sector alliance of mortgage servicers, investors, mortgage insurers, and non-profit housing counselors.
For the 30 days of July alone, servicers finished much more than 120,000 proprietary loan modifications for home owners. It was the second straight 30 days that proprietary mods topped the 120K mark. As reported by Treasury Department, mortgage servicers also finished 36,695 long term mods via the government’s House Inexpensive Modification Plan (HAMP) in July.
If a borrower doesn’t qualify for HAMP, mortgage servicers figure out eligibility for a proprietary loan modification that might assist the homeowner stay in their house. HOPE NOW reports that 86 % of proprietary modifications finished in July reduced the monthly payment for home owners so that you can make them much more sustainable.
The business group also reports that because January of this year, mortgage delinquencies of 60 days or much more past due have dropped 20 %, as of July 2010. HOPE NOW’s information show that 60-plus-days delinquencies decreased from three,487,783 in June to three,298,236 in July, a drop of 5 % over the one-month period.
Numerous analysts have suggested that recent drops in delinquency stats are merely the byproduct of an improve in foreclosures by servicers as they work via the large backlog of defaulted mortgages and push cases via the pipeline.
HOPE NOW’s information seems to support this assumption. Together with the slight month-to-month drop in delinquencies, the organization also reported that foreclosure begins jumped 22 % in July and finished foreclosure sales rose 12 %. July’s foreclosure begins outpaced loan mods throughout the 30 days by nearly 90 %.
Foreclosures had been initiated on 226,664 houses throughout the 30 days of July, up from 186,395 in June, based on HOPE NOW. Sales had been finalized on 97,951 foreclosed houses in July, compared to 87,842 the 30 days prior.
Faith Schwartz, senior advisor for HOPE NOW, said, “As noted, we did see an improve in foreclosure begins and sales, despite the unprecedented efforts from the business, together with its government and non-profit partners to provide numerous alternatives to foreclosure. We believe this is really a function of borrowers moving via the pipeline of all eligible plan offerings (government and private business) to exhaust all alternatives.”
Schwartz added, “The improve in foreclosures is also a reflection from the continued challenges facing the economy, particularly the level of unemployment nationwide. We remain hopeful that as jobs begin to come back the housing marketplace will stabilize.”
Because HOPE NOW initiated survey information reporting in July 2007, the organization says much more than three.5 million home owners have saved their houses via long term loan modifications. This total reflects the combination of proprietary loan modifications plus those finished under HAMP.
Combined with other mortgage choices, for example repayment plans and forbearance, the mortgage business has assisted nearly 10.4 million home owners because HOPE NOW was formed in 2007.