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Loan Mods Outpace Foreclosure Sales Nationwide as 1.05 Million Are Completed in 2011

Feb 07, 2012

HOPE NOW has released its final 2011 loan modification data, which shows that an estimated 1.05 million homeowners received permanent, affordable loan modifications from mortgage servicers in 2011. The reported data for December shows that, for the 2011 calendar year, mortgage servicers completed approximately 695,000 proprietary loan modifications for homeowners and 353,677 Home Affordable Modification Program (HAMP) modifications as reported by the U.S. Department of the Treasury. Over the two year period since December 2009, nearly three million permanent loan modifications have been completed for homeowners. For the month of December, there were approximately 80,000 loan modifications completed, including 56,000 proprietary loan mods and 23,374 loan mods completed under HAMP. Additionally, the data show that loan modifications outpaced foreclosure sales for the fourth consecutive year. In 2011, there were approximately 843,000 foreclosure sales completed for the year. This represented a significant drop from the 1.07 million reported in 2010. "Since 2007, more than five million permanent, sustainable solutions have been offered and in the past two years, almost three million have been done," said Faith Schwartz, executive director of HOPE NOW. "While HOPE NOW’s data shows that total loan mods for 2011 were less than the number completed last year, it is important to note that foreclosure sales dropped by more than 21 percent from 2010." Highlights of the 2011 data: ►Total permanent loan modifications were approximately 1.05 million, compared to 1.76 million in 2010—a decline of 40 percent. ►Completed foreclosure sales were approximately 843,000, compared with 1.07 million in 2010—a decline of 21 percent. ►Loan modifications with reduced principal and interest payments accounted for approximately 80 percent (555,000) of all proprietary modifications. ►Fixed-rate modifications (initial fixed period of five years or more) accounted for 82 percent (572,000) of all proprietary modifications. ►60-plus days delinquencies for December 2011 were 2.79 million, compared to 2.87 million for December 2010. "As HOPE NOW continues its efforts in 2012, we are focused on streamlined decision-making, creating best practices for educating homeowners on all available options and expanded outreach to include military homeowners,” said Schwartz.  
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