HOPE NOW has released its May 2012 loan modification data which found that an estimated 63,000 homeowners received permanent, affordable loan modifications during the month. According to the May data, approximately 45,000 were completed via proprietary programs and 17,590 loan modifications were completed under the Home Affordable Modification Program (HAMP). HOPE NOW is also reporting its data on short sales that the organization has been collecting since December 2009. The latest data shows that approximately 38,000 short sales were completed in May 2012. The total number of short sales completed since HOPE NOW started collecting this data is approximately 906,000. This brings the total number of permanent, non-foreclosure solutions since 2007 to 6.43 million. This figure includes proprietary loan modifications, HAMP loan modifications and short sales.
"Foreclosures still have a negative impact on communities across the country and our highest priority remains proper education and implementation of alternatives to foreclosure," said Faith Schwartz, executive director of HOPE NOW.
The May data showed increases in both foreclosure starts and sales for the month, compared to the previous month. Foreclosure starts were 204,000 for the month (up from 177,000 in April) and completed foreclosure sales were 65,000 (up from 60,000 in April).
Delinquencies of 60 days or more remained flat for the month at 2.53 million. Delinquency data is extrapolated from data received by the Mortgage Bankers Association (MBA) for the first quarter of 2012.
Some of the highlights of the May 2012 data:
►Loan modifications were approximately 63,000 (approximately 45,000 were proprietary and 17,590 were completed under HAMP)
►Completed foreclosure sales were approximately 65,000, up from 60,000 in April—an increase of nine percent
►Foreclosure starts were approximately 204,000, up from 177,000 in April—an increase of 15 percent.
►Loan modifications with reduced principal and interest payments accounted for approximately 81 percent (37,000) of all proprietary modifications.
►Loan modifications with reduced principal and interest payments of 10 percent or greater accounted for approximately 73 percent (33,000) of all proprietary modifications.
►Fixed-rate modifications (initial fixed period of five years or more) accounted for 90 percent (41,000) of all proprietary modifications.
►60-plus days delinquencies were flat at approximately 2.53 million, compared to 2.52 million in April.
