Two million-plus foreclosures prevented in past 14 months by mortgage industryMortgagePress.comHOPE NOW, foreclosures, Faith Schwartz, sub-prime
HOPE NOW, the private sector alliance of mortgage servicers,
counselors and investors that has been working aggressively to
prevent foreclosures, today announced that nearly 2.3 million
homeowners have avoided foreclosure and have been able to stay in
their homes due to the continuing efforts of HOPE NOW and the
broader mortgage industry.
In August 2008, mortgage servicers helped homeowners avoid
foreclosure by completing more than 189,000 mortgage workouts.
Workouts include both modifications to the terms of existing
mortgages and repayment plans. Barring a life event such as a job
loss, death, or illness, all workouts are intended to enable a
homeowner to remain in that home as long as he or she wishes to do
so.
According to Faith Schwartz, HOPE NOW's executive director, the
latest results show that the industry is continuing to work hard to
help homeowners.
"Without HOPE NOW, the current mortgage and financial crises
would be more serious and harder to turn around," said Schwartz.
"We will continue to work hard to help homeowners and stabilize
communities."
The HOPE NOW report estimates that on an industry-wide
basis:
• Mortgage servicers have helped 2.26 million homeowners
avoid foreclosure since July 2007.
• Mortgage servicers provided loan workouts for
approximately 189,000 borrowers in August 2008.
• In August, approximately 110,000 homeowners received
repayment plans; approximately 79,000 received loan
modifications.
• Nearly 53 percent of homeowners with subprime loans who
received workouts through mortgage servicers received
modifications.
A summary table of the results is attached and can be found by
clicking here.
HOPE NOW also announced today the results of a separate survey
of sub-prime adjustable rate mortgages with rates resetting in
2008. The results, reported by nine companies representing
approximately 60 percent of subprime loans, are as follows:
• Approximately 1.1 million subprime loans were scheduled
to reset between January and August 2008.
• Since rates began to reset on these loans in January 2008,
those loans that were current at reset and subsequently started the
foreclosure process account for 1.2 percent of remaining
loans.
• Nearly 91,000 of the 1.1 million loans have been modified.
Over 75 percent of these modifications are for 5 years or
longer.
• Almost 449,000 of the sub-prime adjustable rate loans that
were originally scheduled to reset during this period were paid in
full when the homeowner refinanced the loan or sold the
property.
For more information, visit www.hopenow.com.
