HOPE NOW released its Q3 2013 data, which shows that approximately 181,000 homeowners received permanent loan modifications from mortgage servicers from July through September of this year.
Of the 181,000 loan modifications completed for the third quarter of 2013, about 136,000 homeowners received proprietary loan modifications and 45,136 homeowners received loan modifications completed under the Home Affordable Modification Program (HAMP).
Total Loan Modifications Since 2007 at 6.71 Million
Since 2007, the mortgage industry has completed more than 6.71 million total permanent loan modifications for homeowners. Of those loan modifications, more than 5.4 million were proprietary programs and 1,268,635 were completed under HAMP.
Short Sales Completed Since 2009 at 1.39 Million
Short sales for the third quarter of 2013 were approximately 67,000, for a total of approximately 1.39 million since December 2009. Approximately 19,000 short sales were completed in the month of September.
Q3 2013 vs. Q2 2013 – Foreclosure Starts Down 10 Percent
During the third quarter of 2013, there were an estimated 290,000 foreclosure starts, compared to 323,000 during the previous quarter – a decline of over 10 percent.
Here are some other key metrics for Q3 2013 vs. Q2 2013:
►Completed foreclosure sales in Q3 2013 were approximately 167,000 vs. 158,000 for Q2 2013 – an increase of six percent.
►Short sales completed in Q3 2013 were approximately 67,000 vs. 81,000 for Q2 2013 – a decline of 17 percent.
Q3 2013 vs. Q3 2012 – Foreclosure Starts Down 42 Percent
The 290,000 foreclosure starts in the third quarter of 2013 compares to an estimated 499,000 initialized during the third quarter of 2012.
Here are some other key metrics for Q3 2013 vs. Q3 2012:
►Loan mods for Q3 2013 were approximately 181,000 vs. 233,000 for Q3 2012 – a decline of 22 percent.
►Foreclosure sales for Q3 2013 were approximately 167,000 vs. 196,000 for Q3 2012 – a decline of 15 percent
►Short sales completed for Q3 2013 were approximately 67,000 vs. 109,000 for Q3 2012 – a decline of 39 percent.
September 2013 Key Data Points
For the month of September, there were an estimated 53,000 permanent loan modifications completed. Of that total, approximately 40,000 were proprietary loan modifications and 12,884 were completed under HAMP. Total modifications for the month represented a 21 percent decline from the previous month (66,000).
Here are proprietary loan modification characteristics for the month (Non-HAMP loan modification):
►Proprietary loan modifications that included fixed interest rates of five years or more accounted for 93 percent (37,000) of the total.
►Proprietary loan modifications with reduced principal and interest monthly payments accounted for 76 percent (30,000) of the total.
►Proprietary loan modifications with reduced principal and interest payments of more than 10 percent accounted for 71 percent (28,000) of the total.
Other key metrics for the month of September 2013 compared to August 2013:
►Foreclosure starts were estimated at 93,000 in September vs. 99,000 in August – a decline of six percent.
►Foreclosure sales were estimated at 51,000 in September vs.58,000 in August – a decline of 12 percent.
►Short sales completed were approximately 19,000 in September vs. 23,000 in August – a decline of 17 percent.
►Delinquencies of 60+ days were approximately 2.08 million in September, representing virtually no change from August. (Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the Q3 2013).
Eric Selk, executive director, issued this statement:
“HOPE NOW firmly believes that the eight million non-foreclosure solutions completed since 2007 are proof of the success of the unprecedented collaboration between the private and public sectors, on behalf of at-risk families.
While the mortgage solution data each month shows progress in the housing market, there are still a large number of homeowners looking for solutions. Fortunately, our members remain committed to assisting these borrowers and will continue to report this valuable data on a monthly basis.
As always, HOPE NOW will continue its aggressive borrower outreach through face to face events, such as the upcoming event on November 22nd in Hollywood, Florida, co-sponsored by Making Home Affordable. Additionally, HOPE NOW will partner with state agencies and military non-profits to host special events for Service Members, such as the recent event held in Virginia Beach – co-sponsored by the Federal Reserve Bank of Richmond - that saw close to 100 families receive assistance.
Finally, we have partnered with Springboard to offer online events that connect borrowers with mortgage servicers and non-profit counselors. We held one of these ‘virtual’ events for Arizona homeowners last week and we are encouraged by the response rate and results. A second similar event is planned for December 10th-12th for residents of the California Central Valley.
This is all part of an overall strategy to assist families through innovative and creative outreach methods. It is hoped that this next generation of borrower events, combined with our traditional outreach approach, will continue to provide at-risk homeowners with the most efficient resources at their disposal as they seek solutions for their mortgages.”