HOPE NOW has released its May 2014 loan modification data, finding that an estimated 37,000 homeowners received permanent, affordable loan modifications from mortgage servicers during the month of May. This total includes modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP).
Since 2007, approximately 7.05 million total homeowners have received loan modifications. This includes approximately 5.7 million proprietary loan modifications and 1,376,448 completed via HAMP. Of the loan modifications completed in the month of May, an estimated 25,000 were through proprietary programs and 11,774 were completed via HAMP.
For the month of May, the combination of total loan modifications, short sales, deeds in lieu and workout plans outpaced foreclosure sales by a margin of almost four to one (approximately 151,600 solutions vs. 39,700 foreclosure sales).
Workout Plans Total 102K for Month
In the month of May, mortgage servicers completed approximately 102,000 workout plans for homeowners. These are non-loan modification, non-foreclosure alternatives that provide short term relief for homeowners who continue to work on permanent options. Repayment plans and liquidations options are part of this category.
Foreclosure Sales Decline, Starts Increase
Completed foreclosure sales declined in May, with approximately 38,700 for the month, compared to 40,000 in April – a decrease of four percent. Foreclosure starts increased by the same percentage, with 67,200 reported in May compared to 64,800 reported in April.
Serious Delinquencies Continue to Decline
Delinquencies of 60 days or more were under two million for the third straight month – at approximately 1.90 million. Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the first quarter of 2014.
Other Key Metrics: May vs. April
►Loan modifications: Approximately 37,000 completed in May vs. 42,000 in April – a decrease of approximately 12 percent.
►Short sales: Approximately 10,000 completed in May vs. 12,000 in April – a decrease of 14 percent.
►Deed in-lieu: Approximately 2,600 completed in May vs. 2,800 in April – a decrease of seven percent.
“HOPE NOW reached a significant data milestone in April when its members reached the seven million loan modification mark," said Eric Selk, executive director of HOPE NOW. "In May, the progress continues as loan modifications, short sales and deeds in lieu continue to outpace completed foreclosure sales. We have noted the number of short term solutions in this month’s data as well. These non-permanent options are crucial to homeowners who may have a loan modification or other permanent course of action on the horizon."