HOPE NOW mortgage servicers provided nearly 503,000 loan workouts for homeowners in Q1 of 2008MortgagePress.comsub-prime loan workouts, repayment plans, foreclosure
Nearly 1.4 million loan workouts since July
2007
Almost 503,000 homeowners were able to stay in their homes during
the first quarter of 2008 because of loan workouts provided by
mortgage servicers, according to a report released by HOPE NOW.
The report estimates that on an industry-wide basis:
•Servicers provided loan workouts for about 1,376,000
homeowners since July 2007.
•Of the 502,500 prime and sub-prime loan workouts that
servicers provided to homeowners during the first quarter of 2008,
approximately 323,000 were repayment plans and 179,500 were loan
modifications.
•During the first quarter of 2008 loan modifications
represented 44 percent of all sub-prime loan workouts, which is
double the 2007 rate.
•In March loan modifications were 49 percent of all
sub-prime workouts.
"Mortgage servicers continue to focus on doing everything
possible to help troubled homeowners avoid foreclosure," said Faith
Schwartz, executive director of HOPE NOW. "HOPE NOW is providing a
way for homeowners to find real solutions so that they can stay in
their homes. While there is still more work to be done, concrete
progress is being made and HOPE NOW members will continue their
efforts and work to help as many borrowers as possible."
Please visit www.hopenow.com/MarSummarytable.pdf
for the summary table.
Hybrid ARM resets
Results, representing 61 percent of the market, on sub-prime
adjustable-rate mortgage (ARM) workouts and foreclosures for loans
resetting in the first quarter of 2008 are as follows:
•There were 431,171 sub-prime 2/28 and 3/27 loans that
were scheduled to reset during the first quarter of 2008.
•14,418 of these loans have been modified and nearly 64
percent were modified for five years or more.
•203,000 of these loans (47 percent) were paid in full
through refinancing or sale.
On Dec. 6, the American
Securitization Forum (ASF) announced a plan to fast-track
solutions for sub-prime ARM borrowers who could afford their
starter rate but could not afford the reset rate. This plan has
minimized foreclosures for borrowers who could afford their starter
rate. With recent reductions in short-term interest rates, the
reset shock has become much smaller than it was in December, so far
fewer homeowners need modifications to avoid unaffordable
resets.
Homeowners who are having trouble making their mortgage payments
should call their servicer or the HOPE Hotline, (888) 995-HOPE,
immediately to explore what options are available. The (888)
995-HOPE Hotline is provided by the Homeownership Preservation
Foundation.
There is no cost to borrowers for using HOPE NOW and the (888)
995-HOPE Hotline. Borrowers should be wary of sources that offer
help but require a fee.
For more information, visit www.HOPENOW.com.
