HOPE NOW Reports 25% Increase In Loan Workouts

Posted by Orb Staff on July 30, 2009 No Comments
Categories : Mortgage Servicing

ge modification activity dropped 5.1% in June, while repayment plans jumped 44.9%, according to the [link=http://www.hopenow.com/press_release/files/June_Data_Release_072909.pdf][u]HOPE NOW Alliance's[/u][/link] most recent monthly data. In total, more than 310,000 homeowners completed workouts during the month – a 25% increase over May. HOPE NOW has reiterated that the drop in modifications – the second decrease in as many months – is likely due to the way Home Affordable Modification Program (HAMP) mods are classified. Before a borrower can official sign a HAMP modification agreement, he or she must complete a three-month trial period. The trials are not reported as modifications, but rather as "trial modifications" or "repayment plans." "I am proud of the continued progress made by HOPE NOW servicers and am confident that they are aggressively and proactively using HAMP, as well as other successful foreclosure prevention programs, to help as many homeowners as possible," says Faith Schwartz, executive director of HOPE NOW. HOPE NOW also reported 93,924 foreclosure sales in June – an increase of more than 13% from the prior month. For the first time since HOPE NOW began collecting data, prime foreclosure sales in June outpaced subprime sales by two to one. The alliance's survey data suggests a peak in subprime foreclosure sales occurred a year ago, in the second quarter of 2008. The largest gain in reported prime-loan foreclosure sales occurred in the recently ended second quarter of 2009, at 154,108. SOURCE: [link=http://www.hopenow.com]HOPE NOW

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