Modifications Decline Significantly; Foreclosure Sales Rise

Modifications under the HOPE NOW alliance declined significantly in April, due entirely to a decline in the number of proprietary transactions. HOPE NOW said its members completed 69,888 loan modifications during the month, down from 88,485 in March. Modifications completed under the Home Affordable Modification Program (HAMP) actually increased slightly, from 11,913 to 11,966 but proprietary modifications fell to 57922 from 78,522.

Of the proprietary modifications in April, 93 percent included interest rates that were fixed for at least five years, 83 percent featured reduced principal and interest payments, and for 76 percent that reduction was greater than 10 percent.

Since HOPE NOW was begun as a voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers, and non-profit counselors in 2007 its members have completed 6.39 million loan modifications, 5.2 million under proprietary auspices and 1.19 million through HAMP (which began in 2009).

Foreclosure sales increased from 52,000 in March to 59,000 in April, a 14 percent escalation. Foreclosure starts increased by 1,000 to 116,000. Short sales reached a total of 1.26 million since HOPE NOW started tracking them in 2009 with an additional 27,000 short sales. There were 28,000 in March.

HOPE NOW continues to sponsor events where borrowers can meet face to face with lenders and housing counselors. Upcoming events are scheduled in Columbia, South Carolina and Birmingham, Alabama.