About 116,000 homeowners received permanent mortgage modifications from servicers during the second quarter – down about 13% compared to approximately 133,000 in the first quarter – as the housing market continued to heal from the effects of the Great Recession, HOPE NOW reports.
The voluntary, private-sector alliance of mortgage servicers, investors, mortgage insurers and nonprofit counselors says approximately 421,000 homeowners received some sort of mortgage relief between the months of April and June. This includes a mix of retention and liquidation plans, including short sales, repayment plans, deeds in lieu and other ‘work outs.’
As HOPE NOW reported last month, foreclosure prevention actions are now outpacing foreclosure sales by a pace of about four to one.
Of the 116,000 loan modifications completed in the second quarter, about 82,000 were proprietary while about 34,400 were completed under the Home Affordable Modification Program (HAMP).
Since 2007, the mortgage industry has completed 7.1 million total permanent loan modifications for homeowners. Of those loan modifications, more than 5.7 million were proprietary programs and 1,387,321 were completed under HAMP.
Foreclosure sales totaled about 115,000 for the quarter, down 9% compared to the approximately 126,000 recorded in the first quarter to reach the lowest quarterly total since HOPE NOW began tracking data in 2007.
Foreclosure starts also declined to about 200,000 for the second quarter – a drop of about 8% compared to the approximately 217,000 reported for the first quarter and down about 38% compared to the approximately 323,000 recorded in the second quarter of 2013.
About 33,000 short sales were completed in the second quarter – down about 3% compared to the approximately 34,000 recorded in the first quarter and down about 60% compared to the approximately 81,000 recorded in the second quarter of 2013.
There were about 114,000 foreclosure sales in the second quarter – down about 27% compared to the estimated 158,000 completed during the second quarter of 2013. This represents a continuing trend of declining foreclosure sales quarter to quarter.
About 7,500 deeds in lieu were completed in the second quarter – virtually unchanged from the first quarter.
Looking just at the month of June, there were an estimated 38,000 permanent loan modifications completed – a 6% increase compared to the 36,000 in May – of which about 28,000 were proprietary loan modifications and about 10,813 completed under HAMP.
There were about 37,000 foreclosure sales in June compared to about 38,000 in May.
There were about 69,000 foreclosure starts in June, an increase of about 4% compared to the approximately 67,000 recorded in May.
There were about 7,500 short sales in June, up slightly compared to the approximately 7,400 in May.
About 1.89 million delinquencies (60-plus days overdue) were reported in June, compared to 1.87 million in May. HOPE NOW's delinquency data is extrapolated from data received by the Mortgage Bankers Association for the second quarter.