Mortgage servicers modified 67,000 home loans in August, up 8% month-over-month, bringing the total amount of loans modified since 2007 to 5.4 million, Hope Now said Wednesday.
Hope Now, a private alliance of mortgage servicers, investors, insurers and nonprofits, attributes the continued increase in loan modifications to consumers taking advantage of the various tools to responsibly handle mortgage challenges.
"Homeowners attending our events and reaching out to their mortgage companies are now realizing more options than ever before, whether they are seeking a loan modification, a short term solution like forbearance or even a graceful exit from the home via short sale," said Hope Now executive director Erik Selk.
He added, "The efforts of mortgage servicers, non-profit housing counselors and federal and state agencies have produced tangible results."
Of the homeowners receiving modifications in August, 48,000 benefit from proprietary loan mods, while 19,069 receive adjustments through the Home Affordable Modification Program.
Since 2009, homeowners completed 1.36 million short sales, while roughly 1.25 million have received HAMP modifications.
Foreclosure sales reached 59,000, while foreclosure starts hit 101,000 in August, compared to around the same number recorded in July.
Serious delinquencies declined a slight 2.5% in July, with 2.18 million loans classified as 60 days or more past due, down from 2.24 million a month earlier.
Of the property loan modifications completed, 88% included a fixed-interest rate of five years or more, while 82% included reduced principal and monthly interest payments.
Loans modified with more than 10% reductions in principal and interest payments accounted for 71% of the total modifications.