‘Hope Now’ Nears 7 Million Modifications

News

HOPE Now, founded in 2007 as an early
response to the growing threat of foreclosures, continues to negotiate loan
modifications in double-digit numbers for distressed homeowners.  The voluntary, private sector alliance made
up of loan servicers, loan investors, mortgage insurers, and non-profit housing
counselors arranged for 42,000 homeowners to receive permanent loan
modifications in February vs. 44,000 in January.  That number includes 30,000 proprietary
modifications and an additional 12,445 done through the Home Affordable Modification Program (HAMP).

While
the program continues to respond to the need for foreclosure prevention,
administrators note steady declines in both foreclosure starts, which fell to
69,000 during the month from 75,000 in January and foreclosure sales which numbered
36,000, down from 48,000 the previous month. 
Both totals were the lowest since HOPE NOW began reporting seven years
ago.

HOPE Now has completed
approximately 6.93 million modifications over that period. About 5.6 million
were proprietary modifications
and 1.34 million were done through HAMP which
started two years later.   

Serious delinquencies (60 days or
more) were under two million for the second straight month – at approximately
1.98 million.  HOPE NOW said this number
is yet another indicator of the progress made in stabilizing the housing
market. For comparison purposes, there were 4.13 million homeowners who were 60
or more days delinquent in December of 2009 – more than twice the current
number. 

The organization also facilitated
11,000 completed short sales during the month, a decrease of 8 percent from the
12,000 completed in January.  There were 2,300
borrowers who exited homeownership through a deed-in-lieu, down from 2,500 in
January.

Eric Selk, Executive Director of
HOPE Now said, “Mortgage solution data collection continues to be a focus for
HOPE NOW. We are pleased by the efforts of our servicer members, non-profit
partners and government partners on behalf of struggling homeowners. Even with
serious delinquencies in decline, the industry continues to offer homeowners a
multitude of sustainable and viable solutions that are alternatives to foreclosure.

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