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HOPE NOW has released its loan modification data, which found that total non-foreclosure solutions (the combination of total loan modifications, short sales, deeds in lieu and workout plans) in the month of February, were approximately 147,000. This compares to approximately 28,000 foreclosure sales for the month. Included in that total solutions figure were an estimated 34,000 permanent loan mods. This total includes modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP). Since HOPE NOW began reporting data in 2007, the total number of non-foreclosure solutions is 23.5 million and the number of permanent loan modifications is 7.4 million. Of the permanent loan modifications completed in the month of February, an estimated 24,000 were through proprietary programs and 10,074 were completed via HAMP.
“Non-foreclosure solutions outpaced foreclosure sales by more than a five to one margin in the month of February," said Eric Selk, executive director of HOPE NOW. "This has been a fairly consistent trend for the past year and illustrates the availability of various long term and short term solutions that benefit homeowners. The volume of solutions, including loan modifications, has remained consistent even though serious mortgage delinquencies fell to its lowest level since HOPE NOW began tracking data. Our industry members comprehensively review all at-risk families for multiple options, when going through the loss mitigation process, and attempt to apply the most viable solution for each situation."
Key metrics found in HOPE NOW's studies, a month to month comparison from February vs. January, include:
►Loan modifications: Approximately 34,000 completed in February vs. 35,000 in January—a decrease of approximately three percent.
►Short sales: Approximately 7,500 completed in February vs. 7,700 in January—a decrease of three percent.
►Deed in-lieu: Approximately 1,800 completed in February vs. 2,000 in January—a decrease of 10 percent.
►Foreclosure starts: Approximately 66,000 in February vs. 80,000 in January—a decrease of 18 percent.
►Foreclosure sales: Approximately 28,000 in February vs. 36,000 in January—a decrease of 22 percent.
►Serious delinquencies: Approximately 1.85 million in February vs. 1.90 million in January—a decrease of three percent.