Washington, D.C. (September 1, 2009) – HOPE NOW, the private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, announced today that its July data estimates that 1.77 million homeowners received workout solutions to avoid foreclosure since January 2009. HOPE NOW estimates a 20% improvement in foreclosure mitigation activity in July 2009 compared to July 2007, when it started tracking data, illustrating a clear trend in the decline of foreclosure sales to starts over time.This shows that the pace of workout solutions is continuing to row.
HOPE NOW Alliance members and the broader mortgage industry are helping more and more borrowers out of foreclosure. While there is more work to be done, the data demonstrates that mortgage servicers and their partners are responding to this ever increasing challenge. While foreclosure starts increased slightly from 251,340 in June to 283,682, in July, completed foreclosure sales decreased from 92, 661 to 89,173. The 60-day
plus delinquencies show a slight increase of 5.9% or 3.1 million homeowners in July.
“The good news is that in July, over 253,000 borrowers were helped through loan work out solutions, while foreclosure sales dropped. This demonstrates the industry’s commitment to finding solutions to help people stay in their homes when possible,” said Faith Schwartz, Executive Director of HOPE NOW. “Foreclosure intervention is working and we continue to urge at-risk borrowers to contact their lender/mortgage servicer or call the Homeowner’s HOPE™ Hotline at 888-995-HOPE, a trusted resource for help.”
In addition, the U.S. Department of the Treasury reported that servicers initiated 230,000 trial modifications in July. Successful trial loan modifications that complete the 90 day Home Affordable Modification Program (HAMP) payment terms and completely documented as final modifications will be included in future HOPE NOW modification data. It is anticipated that modification numbers will increase in HOPE NOW industry survey reports in the coming months. The industry remains committed to the administration’s goal of completing 500,000 loan modifications by November 1, 2009.
Also in July, loan modifications decreased from 93,921 in June to 80,167. Repayment plans also declined in July to 173,506 from 211,882 in June. This downward trend over the last few months is a result of servicers retooling and refocusing efforts to aggressively execute and offer the Obama administration’s HAMP solution.
“We are encouraged by the number of HAMP trial modifications being offered by servicers. Once those trial modifications become permanent, we expect the overall number of loan modifications for borrowers to increase,” said Schwartz. “Our HOPE NOW servicers and the mortgage industry, at large, are working hard to provide borrowers with solutions that best suit each individual situation. 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.”
HOPE NOW continues its efforts to reach troubled homeowners with face-to-face homeowner to lender/servicer forums across the country. Thus far, HOPE NOW and its partners from the U.S. Department of the Treasury, Fannie Mae, Freddie Mac, the Federal Reserve banks, NeighborWorks America and other non-profit housing counselors have helped more than 40,000 at-risk borrowers with work out solutions through these outreach events. The next homeowner outreach event will take place in Boston, Massachusetts on September 17. For a full calendar listing please visit the HOPE NOW website at www.HOPENOW.com.
Source: http://www.hopenow.com/press_release/files/July%20Data%20Release_Final.pdf
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