Mortgage service providers have staved off the foreclosure of 1.9 million homes in the past year in what has been the largest bailout the housing industry has ever seen, according to Hope Now, the private sector alliance of mortgage service providers, counsellors and investors.
Mortgage service providers saved 181,000 homes from foreclosure in June, while the second quarter saw 522,000 workouts completed.
Workouts are modifications to the terms of existing mortgages and repayment plans. Fifty-one percent of subprime loans have been modified.
"The industry continues to accelerate the pace at which it is helping homeowners and expects this positive trend to continue," said Hope Now's executive director Faith Schwartz.
By Steve Stecyk and edited by Cristina Markham**CEP**