HOPE NOW released its July 2013 loan modification data which found that an estimated 63,000 homeowners received permanent, affordable loan modifications from mortgage servicers during the month. This total includes modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP). The total number of loan modifications for 2013 currently stands at approximately 519,000. This compares to approximately 378,000 foreclosure sales reported for the year to date.
The July 2013 total of approximately 63,000 loan modifications brings the total number of permanent loan modifications to 6.6 million.
►Approximately 5.36 million homeowners have received proprietary loan modifications.
►1,236,682 homeowners have received HAMP modifications (Note: HAMP reporting began in 2009).
For the month of July 2013:
►An estimated 50,000 homeowners received proprietary loan modifications.
►13,183 homeowners received HAMP modifications (as reported by United States Department of Treasury).
Through the first seven months of 2013, there were approximately 378,000 foreclosure sales. This compares with 458,000 during the same time period in 2012.
In the month of July 2013, there were approximately 59,000 foreclosure sales completed, compared to 52,000 completed in June – an increase of 14 percent. Foreclosure starts were slightly up as well, with approximately 102,000 recorded in July compared to 98,000 in the month of June – an increase of about five percent.
Short sales for July were approximately 26,000 – the same number reported in June. Since HOPE NOW began tracking short sale data in 2009, approximately 1.32 million short sales have been completed.
Delinquencies of 60 days or more were at 2.24 million for the month of July, compared to 2.21 million in June – an increase of around one percent. Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the second quarter of 2013.
Proprietary Loan Mods Continue to Show Affordability
Loan modifications completed via proprietary programs once again showed characteristics of sustainability and affordability for homeowners. It is important to note that the majority of these loans included both fixed interest rates and reduced principal/interest monthly payments. For the month of July:
►Proprietary loan modifications that included fixed interest rates of five years or more accounted for 99 percent (50,000) of the total.
►Proprietary loan modifications with reduced principal and interest monthly payments accounted for 82 percent (41,000) of the total.
►Proprietary loan modifications with reduced principal and interest payments of more than 10 percent accounted for 81 percent (40,000) of the total.