Nearly 70,000 Homeonwners Receive Loan Mods in August
HOPE NOW has released its August 2013 loan modification data, finding an estimated 67,000 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 580,000. This compares to approximately 438,000 foreclosure sales reported for the year to date. The total of 67,000 loan modifications for August represented an eight percent increase from the 63,000 completed in the month of July. The August 2013 total of approximately 67,000 loan modifications, combined with approximately 23,000 short sales, brings the total number of permanent non-foreclosure solutions to over eight million since 2007 (short sale numbers have been tracked since 2009). Loan modifications and short sales life to date: ►Approximately 5.4 million homeowners have received proprietary loan modifications since 2007. ►1,255,751 homeowners have received HAMP modifications (Note: HAMP reporting began in 2009). ►Approximately 1.36 million homeowners have completed short sales since 2009. ►An estimated 48,000 homeowners received proprietary loan modifications. ►19,069 homeowners received HAMP modifications (as reported by United States Department of Treasury). In the month of August 2013, there were approximately 59,000 foreclosure sales completed, compared to around the same number completed in July. There were approximately 101,000 foreclosure starts, compared with 102,000 recorded in July. Delinquencies of 60 days or more were at 2.18 million for the month of August, compared to 2.24 million in July—a decrease of around 2.5 percent. Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the second quarter of 2013. 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 August: ►Proprietary loan modifications that included fixed interest rates of five years or more accounted for 88 percent (42,000) of the total. ►Proprietary loan modifications with reduced principal and interest monthly payments accounted for 82 percent (40,000) of the total. ►Proprietary loan modifications with reduced principal and interest payments of more than 10 percent accounted for 71 percent (34,000) of the total.