Foreclosure starts fell 21% to 224,000 in August, and workout plans jumped 28% from July, according to the most recent data from Hope Now, the private sector alliance of mortgage servicers, investors, insurers and non-profit counselors. Foreclosure sales fell 16% to 75,000 in August, and repayment plans increased by 38%. Loan modifications also gained 7% from July. “Our data suggests a correlation between the drop in foreclosures and the increase in workout solutions to help at-risk borrowers,” said Faith Schwartz, executive director of Hope Now. The survey suggests the pace of foreclosures slows as tools such as HAMP and other workout solutions gain momentum. The data also shows a 6% climb in 60-day delinquent homeowners, 3.3m in August compared to 3.1m in July. The delinquencies could include a number of trial modifications under HAMP that are not yet permanent, according to the survey. According to the most recent progress report from the US Treasury department, 360,000 trial modifications are underway with the Home Affordable Modification Plan (HAMP), which allocates cap incentives to servicers for the modification of distressed loans. Write to Jon Prior.