HOPE NOW: Housing Market Getting Healthier

Posted by Patrick Barnard on December 01, 2015 No Comments
Categories : Mortgage Servicing

Mortgage servicers completed approximately 337,000 non-foreclosure solutions for at-risk homeowners in the third quarter – a decrease of 18% compared with about 411,000 in the second quarter and a decrease of 28% compared with about 469,000 in the third quarter of 2014, according to HOPE NOW, a voluntary, private-sector alliance of mortgage servicers, investors, mortgage insurers and nonprofit counselors.

Of these, about 98,000 were permanent loan modifications – a decrease of 18% compared with approximately 120,000 in the second quarter – and about another 21,000 were short sales – a decrease of 13% compared with about 24,000 in the second quarter.

The remaining 218,000 solutions included repayment plans, deeds-in-lieu, other retention plans and liquidation plans.

Of the 98,000 loan modifications completed in the third quarter, about 69,000 were proprietary, while 28,748 were through the Home Affordable Modification Program.

The report shows that the housing market is healing more rapidly from the effects of the Great Recession. There were approximately 76,000 completed foreclosure sales in the third quarter – a decrease of 15% compared with about 89,000 in the second quarter and a decrease of 31% compared with 110,000 in the third quarter of 2014.

In addition, there were about 159,000 foreclosure starts in the third quarter – a decrease of 9% compared with 176,000 in the second quarter and a decrease of 26% compared with 215,000 in the third quarter of last year.

About 1.63 million properties were seriously delinquent (60-plus days past due) in the second quarter – a decrease of 6% compared with 1.74 million in the second quarter and a decrease of 16% compared with 1.95 million in the third quarter of 2014.

Looking only at September, total non-foreclosure solutions for the month were approximately 108,000, a decrease of about 5% compared with about 114,000 in August.

Servicers completed about 32,000 loan modifications in September – a decrease of 3% compared with 33,000 in August.

There were about 25,000 foreclosure sales in September – unchanged from the previous month.

In addition, there were about 54,000 foreclosure starts in September – also unchanged from the previous month.

Approximately 1.66 million properties were seriously delinquent in September – an increase of 5% compared with about 1.58 million in August.

‘Our third quarter loan solution data continues to show evidence of an improving housing market on a national level,’ says Eric Selk, executive director of HOPE NOW, in a statement. ‘HOPE NOW's servicer members continue to work with nonprofit, government and community partners to offer the most sustainable solutions for at-risk homeowners. When we reach the end of the year, I believe that the last quarter of data will also show continuing trends toward a healthy housing market.’

To read the full report, click here.

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