member servicers completed 67,000 loan modifications in August. There were
63,000 modifications completed in July so the August figures represented an 8
percent increase. There were also an
estimated 23,000 short sales concluded during the month.
voluntary alliance of private sector mortgage servicers, investors, and
non-profit housing and loan counselors have modified 580,000 delinquent mortgages
thus far in 2013 compared to 438,000 loans which have been foreclosed. The modifications include both an estimated
48,000 that were done through proprietary programs and 19,069 completed through
the Home Affordable Modification Program (HAMP) run by the Departments of
Housing and Urban Development and Treasury.
NOW was founded in 2007 approximately 5.4 million homeowners have received proprietary
loan modifications and another 1,255,751 have had loans modified through HAMP
since that program originated in 2009.
Including the 1.36 million short sales, which were first tracked in
2009, there have been over 8 million permanent non-foreclosure solutions
provided to borrowers by the alliance.
Foreclosure sales and starts were
essentially unchanged from July to August at about 59,000 sales and 101,000
starts. Delinquencies declined by about 2.5 percent from the 2.24 million
loans reported to be 60 or more days past due in July to 2.18 million.
HOPE NOW says that modifications
done through proprietary programs in August continue have sustainable characteristics;
88 percent have fixed rates for five years or more and 82 percent of the
modifications reduced monthly mortgage payments. Seventy-one percent of the August
modifications reduced principal and interest payments by more than 10 percent.