Loan modifications and other foreclosure
prevention measures directed at privately owned mortgages continued at a high
rate during both September and the entire third quarter of 2012. HOPE NOW, the voluntary, private sector
alliance of mortgage servicers, mortgage insurers, and non-profit housing
counselors reports the completion of 219,333 loan modifications during the third
quarter. Proprietary modifications
numbered 186,057, a 41 percent increase over the second quarter when there were
131,556 and 15 percent more than the 161,764 completed in the third quarter of
2011. There were another 33,276 modifications
completed through the government sponsored Home Affordable Modification Program
(HAMP) during July and August 2012.
September figures for HAMP modifications have not yet been released.
For the month of September, there
were 60,595 proprietary loan modifications. This was a 2 percent increase over
the 59,459 modifications in the month of August.
Since 2007 the mortgage industry has
completed 5.82 million total permanent loan modifications for homeowners. Of
those loan modifications, 4,739,109 were proprietary programs and 1,076,747
were completed under HAMP not including September figures which are not yet in.
There were 110,153 short sales completed
through the program in the third quarter, up 3 percent from the second quarter
and 16 percent higher than the 94,560 completed
in the third quarter of 2011. There have
been 1.05 million short sales arranged through HOPE NOW since it began in 2009
and the combination of loan modifications and short sales has brought the total
number of permanent, non-foreclosure solutions to approximately 6.87 million.
Foreclosure starts in the third
quarter of 2012 were 16 percent lower than a year earlier, 503,995 vs. 597,447
and foreclosure sales were down slightly to 197,937 from 199,383. Delinquencies of 60 days or more declined 12
percent to 2.45 million vs. 2.80 million.
Faith Schwartz, Executive Director
of HOPE NOW said of the program's recent results, "The combination of loan
modifications and short sales solutions completed by mortgage servicers in the
third quarter of the year, totals over 329,000. That compares to approximately
198,000 foreclosure sales during the same time period.
"Based on the results of the third quarter
2012 data, there remains a strong focus on foreclosure prevention solutions
which continue to outpace the loss of a home through foreclosure. It cannot be
stated enough that mortgage servicers have more tools than ever before, via
proprietary and government programs, to offer the most viable and realistic
options for at-risk homeowners.'