Foreclosure Sales & Starts Show Declines from Same Time Last Year
WASHINGTON, DC – March 14, 2013 – (RealEstateRama) — HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, released its January 2013 loan modification data. An estimated 78,397 homeowners received permanent, affordable loan modifications from mortgage servicers during the month. This includes modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP).
Total Loan Modifications Since 2007 at 6.15 Million The January total of 78,397 loan modifications brings the total number of permanent loan modifications since 2007 to 6.15 million.
? 5,002,409 homeowners have received proprietary loan modifications.
? 1,151,340 homeowners have received HAMP modifications (Note: HAMP reporting began in 2009).
For the month of January:
? 63,539 homeowners received proprietary loan modifications.
? 14,858 homeowners received HAMP modifications.
Proprietary Loan Mods Continue to Show Affordability
Loan modifications completed via proprietary programs once again showed characteristics of sustainability and affordability for homeowners. For the month of January:
? Proprietary loan modifications that included fixed interest rates of five years or more accounted for 88% (55,698) of the total.
? Proprietary loan modifications with reduced principal and interest monthly payments accounted for 85% (54,113) of the total.
? Proprietary loan modifications with reduced principal and interest payments of more than 10% accounted for 76% (48,595) of the total.
Short Sales Continue to Impact the Market
Short sales for January were 29,244, for a total of approximately 1,182,283 since December 2009. The combination of loan modifications and short sales has brought the total number of permanent, non-foreclosure solutions to approximately 6.18 million.
Foreclosure Sales Down 23% from January 2012
In the month of January 2013, there were 60,412 foreclosure sales completed, compared to 78,734 completed in January 2012.
Foreclosure Starts Down 30% from January 2012
In the month of January 2013, there were 140,482 foreclosure starts reported, compared to 200,447 reported in 2012.
Serious Delinquencies Declined 9% from Same Point Last Year Delinquencies of 60 days or more were at 2.53 million, compared to 2.77 million in January of 2012 – a decline of almost 9%. Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the fourth quarter of 2012.
The full data set for January 2013 is available at www.hopenow.com.
Eric Selk, Executive Director, issued this statement:
“HOPE NOW members continue to find ways to help distressed homeowners, particularly those in areas of great distress – including those impacted by Hurricane Sandy. Work on loan modifications, short sales and other nonforeclosure solutions remains strong, with efforts being made via mortgage servicers, non-profit housing counselors and others on behalf of homeowners. Delinquencies and foreclosure sales have gone down significantly, compared to the same period last year, and that is a testament to the hard work of the industry, aggressive borrower outreach, better financial counseling and the multitude of options available borrowers.
HOPE NOW, along with its government and industry partners, has fine-tuned its borrower outreach efforts, to target markets and population segments that benefit the most from the wide range of mortgage services offered.
Face to face events in hard hit markets such as Atlanta and Miami have already taken place in the first two months of the year, plus a special event for New Jersey residents affected by Super Storm Sandy was held last week. Upcoming events include a two day event in Las Vegas next week and a special event to be held at Joint Base Lewis-McChord in April for military personnel affected by the sequestration.
Additionally, HOPE NOW continues to work with its members and partners to improve communications between stakeholders and close gaps that hinder the process of finding viable mortgage solutions for at-risk homeowners.”
HOPE NOW is the industry-created alliance of mortgage servicers, investors, counselors, and other mortgage market participants, brought together by the Financial Services Roundtable, Housing Policy Council and Mortgage Bankers Association, that has developed and is implementing a coordinated plan to help as many homeowners as possible prevent foreclosure and stay in their homes.
For more information go to www.HopeNow.com or call the free Homeowner’s HOPE™ Hotline at (888) 995-HOPE™.