The mortgage servicing industry helped 253,000 homeowners achieve workout solutions in July, an 18% decrease from 310,000 workouts in June. The July data brings the 2009 total to 1.77m workouts, according to Hope Now, the private sector alliance of mortgage servicers, investors, insurers and non-profit counselors. “The good news is that in July, over 253,000 borrowers were helped through loan work out solutions, while foreclosure sales dropped,” said Faith Schwartz, executive director of Hope Now. “This demonstrates the industry’s commitment to finding solutions to help people stay in their homes when possible.” Although foreclosure starts rose slightly to 283,682 in July from 251,340 in June, completed foreclosure sales fell to 89,173 from 92,661. The volume of 60-day plus delinquencies rose 3.1m — or 5.9% — over June’s level. Modifications fell to 80,167 from 93,921, while repayment plans fell to 173,506 from 211,882. Hope Now attributed the fall in modifications to the emergence of Home Affordable Modification Program (HAMP) 90-day trial periods. Only when a trial emerges in current payment status from the 90-day waiting period is it considered a modification. Hope Now anticipates the volume of modifications to rise as loans emerge from their 90-day HAMP trials. The US Treasury Department indicated 230,000 trial modifications began in July, Hope Now said. “With unemployment expected to be a problem for a growing number of borrowers, the industry is exploring new solutions to help the increasing number of homeowners who may have difficulty paying their mortgage because of job loss or a reduction in income,” Schwartz said. Write to Diana Golobay.
Servicers Initiate 18% Fewer Work-Outs in July: Hope Now
Most Popular Articles
Latest Articles
Selling your home to a family member in 5 easy steps
Selling your home to a family member can be beneficial but requires careful planning and transparent communication. Follow these five steps to ensure a smooth transaction, from agreeing on logistics and assembling a professional team to determining your home’s value and understanding tax implications.
-
FOA reverse stock split goes into effect, appears to have intended impact
-
Senate Aging Committee leaders introduce bill on aging in place
-
HousingWire Pulse: Respondents show cautious optimism about the Q3 housing market
-
US Senate committee approves full funding for Ginnie Mae
-
Connecticut Senator asks HUD for answers on backlog of discrimination complaints