Completed Loan Mods Pass the Five Million Mark Nationwide
HOPE NOW has reported that as of the third quarter of 2011, 4.97 million loan modifications have been completed for homeowners since 2007. This total includes more than 4.11 million proprietary modifications and 856,974 completed under the Home Affordable Modification Program (HAMP) through September 2011. Based on current trends, the industry has surpassed the five million loan modification mark to date. “When HOPE NOW started reporting data at the end of 2007, loan modifications were barely measurable," said Faith Schwartz, executive director of HOPE NOW. "Homeowners either paid their mortgages or forfeited their homes. However, over the past four years, the housing crisis has taught us to re-think helping distressed homeowners through an unprecedented level of collaboration, funding, manpower and expanded resources. Five million hard working American families have been able to prevent foreclosures through permanent loan modifications." The latest data compiled by HOPE NOW shows that after six months of seasoning, more than 80 percent of the proprietary loan modifications completed are performing (less than 90 days past due). The inventory of 60-day-plus delinquencies in the third quarter of 2011 was 2.81 million. This compares to 3.17 million at the same point in 2010, an 11 percent year-over-year decline. Foreclosure starts stood at approximately 600,000. This compares with 709,000 during the third quarter of 2010, a decrease of 15 percent. Foreclosure sales were approximately 200,000. This compares to 314,000 during the same period last year, a decrease of 36 percent. "While this is quite an accomplishment, the housing crisis is far from over," said Schwartz. "The industry, and its partners in the non-profit counseling community and the government, remains committed to reaching out to struggling homeowners, improving the customer experience and embracing new technology."