Total loan modifications for the month of July were up slightly from June with an increase in proprietary modifications outweighing a decline in government loan modifications according to HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors.
Using a three month rolling average, a total of 63,298 homeowners received permanent loan modifications in July, up 3.1 percent from 61,366 loan modifications in June.
The number of completed proprietary loan modifications increased from 44,043 in June to 50,115 in July, a gain of 13.8 percent, while the number of loan modifications made under the federal government’s Home Affordable Modification Program (HAMP) fell from 17,323 in June to 13,183 in July.
Of the proprietary loan modifications completed in July, eighty-two percent (41,047) included reduced monthly principal and interest payments, with 81 percent (40,479) receiving a reduction of more than 10 percent. In addition, ninety-nine percent (49,822) of the loan modifications received fixed interest rate loans of five years or more.
Completed foreclosure sales increased from 51,654 in June to 58,930 in July, an increase of 14.1 percent.
Monthly foreclosure starts increased for the first time in three months from June to July, increasing from 96,730 starts in June to 101,802 in July, an increase of 5.2 percent.
Short sales fell by 0.6 percent from the previous month as a total of 25,942 short sales were completed in July compared to 26,104 in June.
The average number of homeowners that were at least 60 days or more past due over the previous three months increased from 2.216 million loans in June to 2.239 million in July.
Tags: HOPE NOW, private sector alliance, mortgage servicers, loan modifications, fixed rate mortgages, delinquencies, proprietary modifications, foreclosure starts, foreclosure sales
Reported by Shirley Allen