Loan Mods on the Rise as Foreclosures Drop in July

HOPE NOW has released its July 2011 data, showing an increase in proprietary loan modifications for the month, as well as decreases in both foreclosure sales and starts since June. Permanent proprietary loan modifications for the July 2011 were approximately 56,000, representing an 11 percent increase over the 50,000 estimated totals for June. Since HOPE NOW began reporting data in 2007, the mortgage industry has completed nearly 4.8 million loan modifications for homeowners, including more than four million proprietary loan mods and 763,071 completed under the Home Affordable Modification Program (HAMP). Completed foreclosure sales for July 2011 dropped 11 percent from June (65,000 compared to 73,000). Foreclosure starts also declined by nearly five percent for the month (185,000 compared to 194,000). According to HOPE NOW, the inventory of 60-day-plus delinquencies was 2.81 million for the month of July, up slightly from the 2.75 million reported for June, an increase of two percent. “We are happy to see an increase in permanent proprietary loan modifications for the month of July. More encouraging is the significant drop in foreclosure sales and starts, which is directly related to the extraordinary amount of work that is being done to educate at-risk homeowners about their options," said Faith Schwartz, executive director of HOPE NOW. "Loan modifications continue at a steady rate, and in cases where that option is not possible mortgage servicers and housing counselors have the ability to offer a wide range of other solutions.” There were an estimated 605,000 total permanent loan modifications for homeowners in July, 422,000 were proprietary loan mods, and 183,421 were completed under HAMP.