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Foreclosure Starts Down 24 Percent in October

Dec 18, 2012

HOPE NOW has released its October 2012 loan modification data. An estimated 88,583 homeowners received permanent, affordable loan modifications from mortgage servicers during the month. This includes modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP). “The combination of loan modifications and short sales, completed by the industry in the month of October, means that close to 130,000 homeowners received a permanent, alternative to foreclosure," said Faith Schwartz, executive director of HOPE NOW. "The significant decrease in foreclosure starts is also worth noting, although one month alone is not a trend. With multiple servicing transfers, AG settlement activity, and seasonal adjustments, we will be working with more volatility around monthly data for some time." The October total of 88,583 loan modifications brings the total number of permanent loan modifications since 2007 to 5.92 million. Since 2007: ►4,811,240 homeowners have received proprietary loan modifications. ►1,106,599 homeowners have received HAMP modifications (Note: HAMP reporting began in 2009). For the month of October: ►72,580 homeowners have received proprietary loan modifications. ►16,003 homeowners have received HAMP modifications. Short sales for October were 38,518, up 13 percent from the 33,997 completed in the month of September. Short sales continue to impact the market, as 1,085,362 have been completed since 2009. ►Foreclosure starts were down 24 percent for the month: 113,555 foreclosure starts were reported in October, compared to 150,010 in the month of September. ►Foreclosure sales increased 12 percent for the month: 71,080 foreclosure sales were reported in October, compared to 62,645 in the month of September. Delinquencies of 60 days increased to 2.54 million, compared to 2.46 million in September—an increase of three percent. Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the third quarter of 2012.
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Dec 18, 2012
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