Mortgage servicers completed 219,333 loan modifications during the the third quarter, according the data from Hope Now, an alliance between HUD-approved counseling agents, mortgage servicers, investors and other mortgage market participants.
For the month of September, 60,595 proprietary loans were completed. This is a 2% increase from August, which indicates that mortgage servicers delivered 59,459 proprietary loan modifications.
This figure includes proprietary programs and the government’s Home Affordable Modification Program.
Propriety loan modifications with fixed-interest rates of five years or longer accounted for 52,635 of the modified mortgages. Those with reduced principal and interest monthly payments accounted for 52,785 modifications while proprietary modifications with reduced principal and interest payments of month 10% accounted for 76% of the entire total.
The September data also reports that 604,301 homeowners have received permanent loan modifications over the past nine months.
With Q312 numbers added to the total, 5.82 million loan modifications have been completed since 2007.
Short sales for the quarter were 110,153, which added to the total of about 1.048 million since December 2009. The combination of short sales and loan modifications totaled the number of permanent non-foreclosures to 6.67 million.
Foreclosure starts saw a 4% decline from last quarter, while foreclosure sales saw a 7% increase from Q212.
Click on graph below to open short sales and foreclosure findings in new window.
About 5.82 million total permanent loan modifications have been completed since 2007, with 1.076 million went through HAMP modifications.
Executive director Faith Schwartz of Hope Now said in a statement, the members of the alliance will remain committed to extending borrower outreach for the rest of the year by improving stakeholder communications, using technology, streamlining processes and Service Members.
“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,” she said.
Schwartz added, “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.”