HOPE NOW reports homeowner workouts reach record levels in April MortgagePress.comHOPE NOW, mortgage loan workouts, ARMs, Faith Schwartz, forelcosures
HOPE NOW, the private sector alliance of mortgage servicers,
counselors, and investors that is working to help prevent
foreclosures, announced today that mortgage servicers provided loan
workouts to approximately 183,000 homeowners in April 2008, the
highest monthly amount since the program was begun in July 2007.
Since July 2007, the industry has helped almost 1.6 million
homeowners avoid foreclosure through workouts which include loan
modifications and repayment plans.
"These numbers clearly demonstrate that HOPE NOW is succeeding
at helping homeowners avoid foreclosure and stay in their homes,"
said HOPE NOW Executive Director Faith Schwartz. "Foreclosure
benefits no one: the borrower, community, lender and investor all
lose," Schwartz added. "HOPE NOW has every incentive to help
troubled homeowners hold on to their homes, and the alliance will
continue to do everything possible to reach and help as many as
The April report from HOPE NOW estimates that on an
• Mortgage servicers provided loan workouts for
approximately 183,000 at-risk borrowers in April. This is an
increase of 23,000 from the number of workouts in March 2008 and is
the largest number of workouts completed in any month since HOPE
• The total number of loan workouts provided by mortgage
servicers since July 2007 has risen to 1,558,854.
• Approximately 106,000 of the prime and sub-prime loan
workouts conducted by mortgage servicers in April were repayment
plans, while approximately 77,000 were loan modifications.
HOPE NOW also announced today that a separate survey of
sub-prime adjustable rates mortgages determined that:
• Approximately 603,000 subprime loans were scheduled to
reset between January and April 2008.
• 30,545 (5.0 percent) of these loans have already been
modified. Nearly 63 percent of these modifications are for 5 years
• 273,000 (45 percent) of the subprime adjustable rate loans
that were current at reset were paid in full when the homeowner
refinanced the loan or sold the property.
• A limited amount--927 (0.3 percent)--of the loans that
were current at their date of reset have started the foreclosure
A summary table with all the April results can be found at