HOPE NOW has released its May 2011 mortgage industry data, which estimates declines in foreclosure sales for the second straight month. According to the survey data, foreclosure sales nationwide were approximately 68,000, down from 73,000 in the month of April, representing a decrease of seven percent. Foreclosure starts were up for the month, with 176,000 reported versus 163,000 for the month of April, an increase of eight percent.
For the month, permanent loan modifications for homeowners were approximately 85,000, virtually unchanged from the month of April (86,000). Of the total number, approximately 53,000 were proprietary modifications and 32,398 were completed under the Home Affordable Modification Program (HAMP). A breakdown of proprietary modifications showed 78 percent (41,000) included reduced principal and interest payments, 88 percent (47,000) had a fixed interest rate of five or more years and 57 percent (30,000) had reduced principal and interest payments of more than 10 percent.
Here is the full breakdown of the May 2011 data:
Loan modifications
►Loan modifications completed under HAMP were 32,398, up from 28,867 in April—an increase of 12 percent.
►Proprietary modifications for the month were approximately 53,000, down from 57,000 in April—a decrease of seven percent.
Proprietary loan modification characteristics
►Loan modifications with reduced principal and interest payments accounted for approximately 78 percent (41,000) of all proprietary modifications.
►Loan modifications with reduced principal and interest payments by 10 percent or greater accounted for approximately 57 percent (30,000) of all proprietary modifications.
►Fixed-rate modifications (initial fixed period of five years or more) accounted for 88 percent (47,000) of all proprietary modifications.
Loan modification performance
►Proprietary loan modifications with 90-plus day delinquency (recidivism) remained flat with just a one percent increase from the previous month -244,000 vs. 240,000 on active loan modifications.
Foreclosures
►Foreclosure starts for the month were 176,000, up from the 163,000 reported for April 2011—an increase of eight percent.
►Completed foreclosure sales for the month were approximately 68,000, down from the 73,000 reported for April 2011—a decrease of seven percent.
Delinquencies
►60-plus days delinquencies remained relatively flat for the month at 2.67 million, compared to 2.65 million reported in April 2011, an increase of one percent.
“HOPE NOW’s monthly data report is designed to provide a comprehensive overview of mortgage market trends and industry efforts to help homeowners avoid foreclosure," said Faith Schwartz, executive director of HOPE NOW. "While we have seen loan modifications flatten out in recent months, the overall numbers continue to illustrate the size and scope of what mortgage servicers, and their non-profit and government partners, have achieved on behalf of at-risk homeowners."
