HOPE NOW has released its October 2013 loan modification data which finds that an estimated 50,000 homeowners received permanent, affordable loan modifications from mortgage servicers during the month of October. 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 680,000. This compares to approximately 545,000 foreclosure sales reported for the year to date. The total of 50,000 loan modifications for October represented a five percent decrease from the 53,000 completed in the month of September. The October 2013 total of approximately 50,000 loan modifications brings the total number to approximately 6.76 million since HOPE NOW began tracking the data in 2007.
Loan modifications to date:
►Approximately 5.47 million homeowners have received proprietary loan modifications since 2007.
►1,285,018 homeowners have received HAMP modifications (Note: HAMP reporting began in 2009).
Short sales totaled approximately 19,000 in October, for a total of 1.41 million since December 2009. The combination of loan modifications and short sales has brought the total number of permanent, non-foreclosure solutions to almost 8.2 million life to date.
In the month of October, there were approximately 51,500 foreclosure sales completed, compared to 50,600 completed in September—an increase of less than two percent. There were approximately 102,000 foreclosure starts in October, compared with 93,000 recorded in September—an increase of approximately 10 percent.
Delinquencies of 60 days or more were at 2.04 million for the month of October, compared to 2.08 million in September—a decrease of around two percent. Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the third quarter of 2013.
Loan modifications completed via proprietary programs (non-HAMP) 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 October:
►Proprietary loan modifications that included fixed interest rates of five years or more accounted for 92 percent (31,000) of the total.
►Proprietary loan modifications with reduced principal and interest monthly payments accounted for 74 percent (25,000) of the total.
►Proprietary loan modifications with reduced principal and interest payments of more than 10 percent accounted for 64 percent (22,000) of the total.