About 468,000 homeowners received non-foreclosure solutions from mortgage servicers in July, August and September, according to the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors known as Hope Now.
Permanent loan modifications totaled about 109,000 and short sales totaled 30,000.
Other solutions, including repayment plans, deeds in lieu, other retention plans and liquidation plans, made up the rest of the total number.
“When homeowners do not qualify for long-term permanent loan modifications, mortgage servicers continue to look for short term options that, in many cases, lead to a permanent solution,” the HopeNow report says.
Foreclosure sales totaled approximately 108,000 for the quarter.
This is the lowest quarterly total for foreclosure sales recorded since Hope Now began tracking loan data in 2007.
Of the 109,000 loan modifications completed for the third quarter of 2014, about 79,000 homeowners received proprietary loan modifications and 29,384 homeowners received loan modifications completed under the Home Affordable Modification Program.
In the third quarter, the combination of total loan modifications, short sales, deeds in lieu and workout plans outpaced foreclosure sales by a margin of more than four to one, or about 468,000 solutions vs. 108,000 foreclosure sales.
Quarter over quarter, foreclosures sales fell 6%, while foreclosure starts were up the same percentage.
During the third quarter of 2014, there were an estimated 108,000 foreclosure sales, compared to 115,000 during the previous quarter – a decline of over 6%. Foreclosure starts increased 6%, with approximately 212,000 reported for Q3 2014 vs. 200,000 reported for Q2 2014.
Loan modifications were approximately 109,000 for Q3 2014 vs. 116,000 in Q2 2014, a decline of approximately 6%.
Short sales completed in Q3 2014 were approximately 30,000 vs. 33,000 for Q2 2014 – a decline of 9%.
Year over year, foreclosure sales were down a solid 36%.
The 108,000 foreclosure sales in the third quarter of 2014 compares to an estimated 166,000 completed during the third quarter of 2013.