HOPE NOW has released its February 2012 loan modification data, where an estimated 45,000 homeowners received permanent, affordable loan modifications via proprietary programs from mortgage servicers. The reported data for February does not include loan modifications completed under the Home Affordable Modification Program (HAMP). Since 2007, approximately 5.33 million permanent loan modification solutions have been offered to homeowners nationwide.
“There are many moving parts in the foreclosure prevention process and we anticipate that one month will not define any significant trends," said Faith Schwartz, Executive Director of HOPE NOW. "However, one of our key data points showed that we saw a decline in the total number of serious delinquencies—loans that are 60 or more days past due—for February."
The February data also show that foreclosure sales and foreclosure starts both declined from January. For February, there were approximately 69,000 foreclosure sales and 167,000 foreclosure starts. This compares with 79,000 sales and 200,000 starts in January. Delinquencies of 60 days or more declined from 2.77 million in January to 2.66 million in February, or approximately five percent of all loans.
Highlights of HOPE NOW's February 2012 data:
►Proprietary loan modifications were approximately 45,000, down from 56,000 in January—a decline of 20 percent.
►Completed foreclosure sales were approximately 69,000, down from 79,000 in January—a decline of 12 percent.
►Foreclosure starts were approximately 167,000, down from 200,000 in January—a decline of 17 percent.
►Loan modifications with reduced principal and interest payments accounted for approximately 82 percent (36,000) of all proprietary modifications.
►Loan modifications with reduced principal and interest payments of 10 percent or greater accounted for approximately 75 percent (34,000) of all proprietary modifications.
►Fixed-rate modifications (initial fixed period of five years or more) accounted for 90 percent (40,000) of all proprietary modifications.
►60-plus days delinquencies were 2.66 million, down from 2.77 million in January—a decline of four percent.
"Collaborative efforts between the mortgage industry, non-profit community and other stakeholders continue to evolve," said Schwartz. "The common goal is to perfect the customer experience and educate homeowners on their alternatives to foreclosure."
