FHA helps 400,000 families find mortgage relief
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.