June 6, 2012 (Shirley Allen)
Proprietary loan modifications fell by almost eight percent in April and although foreclosure starts remained elevated, foreclosure sales continued to decline 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 42,962 homeowners received permanent, proprietary loan modifications in April, down 7.8 percent from the 46,582 loan modifications in March.
Of the proprietary loan modifications completed in April, 83 percent (35,525) included reduced monthly principal and interest payments, with 76 percent (32,846) receiving a reduction of more than 10 percent. In addition, 89 percent (38,434) of the loan modifications received fixed interest rate loans of five years or more.
Faith Schwartz, Executive Director of HOPE NOW, stated, “The focus remains on streamlining complex and cumbersome processes, improving communication between all parties and enhancing the customer experience. There are significant tools and resources available to homeowners, and all stakeholders involved are committed to educating homeowners on all available alternatives to foreclosure whenever possible.”
Monthly foreclosure starts fell slightly during April following a 6.2 percent jump in March. Foreclosure starts declined a modest 0.4 percent from March to April, falling from 178,014 to 177,259.
Completed foreclosure sales continued to decline, falling from 66,064 in March to 59,643 in April.
Mortgage delinquencies that were at least 60 days past due also declined, falling from 2.543 million loans in March to 2.517 million in April. A year ago, 2.661 million loans were 60 days or more past due.
Tags: HOPE NOW, private sector alliance, mortgage servicers, loan modifications, fixed rate mortgages, delinquencies, proprietary modifications, foreclosure starts, foreclosure sales