The Federal Housing Finance Agency, conservator to Fannie Mae and Freddie Mac, released the third-quarter “Foreclosure Prevention Report” showing that efforts to do just that reversed trend.
The third quarter prevention report, on the other hand, shows an increase.
However, this may reverse again, as Fannie Mae and Freddie Mac placed a moratorium on evictions going into the last weeks of 2016.
“Third-party sales and foreclosure sales decreased 10% to 26,989 while foreclosure starts increased 6% to 66,192 in the third quarter,” the report notes.
Also, Fannie and Freddie can’t seem to get the vacant properties up to speed fast enough to keep pace with demand, the report notes.
“REO inventory declined 11% during the quarter to 77,204, as property dispositions continued to outpace property acquisitions.”
In the first quarter, third-party sales and foreclosure sales declined 4% to 34,873 while foreclosure starts decreased 5% to 70,267.
This compared to the second quarter where third-party sales and foreclosure sales declined 14% to 29,945 while foreclosure starts decreased 11% to 62,364.
Still, the FHFA reports gains in other levels of distressed mortgage servicing at Fannie and Freddie.
The total number of American families saved from foreclosure at the government-sponsored enterprises are staggering. From the FHFA report:
The Enterprises completed 54,744 foreclosure prevention actions in the third quarter of 2015, bringing the total to 3,595,680 since the start of conservatorships in September 2008. Of these actions, 2,962,996 have helped troubled homeowners stay in their homes including 1,868,909 permanent loan modifications.