Loan Mods & Short Sales Outpace Foreclosure Sales 2 to 1
WASHINGTON, D.C. – May 17, 2013 – (RealEstateRama) — HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, released its 1Q 2013 data, which shows that approximately 245,000 homeowners have received permanent loan modifications from mortgage servicers so far this year.
Of the 245,000 loan modifications completed from January through March, about 203,000 homeowners received proprietary loan modifications and 42,157 homeowners received loan modifications completed under the Home Affordable Modification Program (HAMP).
Total Loan Modifications since 2007 at 6.32 Million
Since 2007, the mortgage industry has completed more than 6.32 million total permanent loan modifications for homeowners. Of those loan modifications, more than 5.14 million were proprietary programs and 1,178,639 were completed under HAMP.
Short Sales Completed Since 2009 at 1.24 Million
Short sales for the first quarter of 2013 were approximately 84,000, for a total of over 1.24 million since December 2009. The combination of loan modifications and short sales has brought the total number of permanent, non-foreclosure solutions to almost 7.6 million.
Q1 2013 vs. Q4 2012 – Foreclosure Sales Down 14%
During the first quarter of 2013, there were an estimated 162,000 completed foreclosure sales, compared to 188,000 completed during the previous quarter – a decline of almost 14%.
Here are some other key metrics for Q1 2013 vs. Q4 2012:
? Foreclosure starts in Q1 2013 were approximately 472,000 vs. 362,000 for Q4 2012 – an increase of 30%.
? Short sales completed in Q1 2013 were approximately 84,000 vs. 106,000 for Q4 2012 – a decline of 21%.
Q1 2013 vs. Q1 2012 – Loan Mods up 20%
The 245,000 loan modifications completed in the first quarter of 2013 compares to an estimated 203,000 completed during the first quarter of 2012.
Here are some other key metrics for Q1 2013 vs. Q1 2012:
? Foreclosure starts for Q1 2013 were approximately 472,000 vs. 534,000 for Q1 2012 – a decline of 12%.
? Foreclosure sales for Q1 2013 were approximately 162,000 vs. 210,000 for Q1 2012 – a decline of 22%
? Short sales completed for Q1 2013 were approximately 84,000 vs. 100,000 for Q1 2012 – a decline of 16%.
March 2013 Key Data Points
For the month of March, there were an estimated 88,000 permanent loan modifications completed. Of that total, approximately 77,000 were proprietary loan modifications and 11,913 were completed under HAMP. Total modifications for the month represented a 10% increase over the previous month (80,000).
Here are proprietary loan modification characteristics for the month:
? Proprietary loan modifications that included fixed interest rates of five years or more accounted for 90% (69,000) of the total.
? Proprietary loan modifications with reduced principal and interest monthly payments accounted for 85% (65,000) of the total.
? Proprietary loan modifications with reduced principal and interest payments of more than 10% accounted for 75% (57,000) of the total.
Other key metrics for the month of March 2013 compared to February 2013:
? Foreclosure starts were estimated at 116,000 in March vs.192,000 in February – a decline of 40%.
? Foreclosure sales were estimated at 52,000 in March vs.48,000 in February – an increase of 8%
? Short sales completed were approximately 28,000 in March vs.26,000 in February – an increase of 8%.
? Delinquencies of 60+ days were approximately 2.38 million in March vs.
2.45 million in February – a decrease of 3%. (Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the first quarter of 2013).
The full data set for 1Q 2013 can be found at www.hopenow.com Eric Selk, Executive Director, issued this statement:
“The total number of permanent loan modifications completed by HOPE NOW’s mortgage servicing members, on behalf of homeowners, coupled with completed short sales, significantly outpaced foreclosure sales in the first quarter of the year.
This 2 to 1 margin of loan mods/short sales (328,000) to foreclosure sales (162,000) this quarter, is continued proof that the efforts of the industry, the government, the non-profit community and others still has a significant, positive impact on the housing market and the overall economy.
Our members have now completed 6.32 million loan mods since 2007, managed more than 140 outreach events in 70 markets and continue to offer more solutions than ever before to at-risk homeowners.
Additionally, the HOPE NOW web site, www.hopenow.com, receives an average of 50,000 page views per month by visitors accessing our site. Based on feedback from HOPE NOW sponsored outreach events, we know visitors use the HOPE NOW website to find help and information on ways to avoid foreclosure and to access other valuable consumer resources.
So far in 2013, HOPE NOW has held borrower events in Atlanta, Miami, New Jersey, Las Vegas and Los Angeles, with close to 3,000 families receiving face to face assistance. Events are already scheduled for Chicago this week, plus Columbia, SC in June, as well as Port St. Lucie, FL and Birmingham, AL in July.
A special event was held last month for government employees at Joint Base Lewis-McChord in Washington that saw 132 attendees. Our members will continue to work with Department of Defense partners, throughout the year, to identify future locations for similar events.”