The most recent data from HOPE NOW showed foreclosure starts dropped 21% to 224,000
and foreclosure sales dropped 16% to 75,000 from July.
Workout plans increased 28% to 325,000. Repayment plans rose by 38% and loan modifications were up by 7%. The Treasury Department reported on Sept. 9 that 360,000 Home Affordable Modification Program (HAMP) trial modifications are underway.
“Our data suggests a correlation between the drop in foreclosures and the increase in workout solutions to help at-risk borrowers,” said Faith Schwartz, executive director of HOPE NOW. This change implies progress is being made using all of the tools available, such as HAMP- the government backed modification program- and other workout solutions, to slow the pace of
HOPE NOW survey data shows a 6% rise in homeowners who are 60 days plus delinquent, 3.3 million borrowers in August from 3.1 million in July. This could include the considerable number of trial modifications under the HAMP program that are not yet permanent, a release from HOPE NOW said.
“Mortgage servicers and non-profit housing counselors are working hard to help homeowners who are facing hardship in these tough economic times,” Schwartz said. “As HOPE NOW continues its outreach to consumers through its foreclosure prevention workshops across the country and through the Homeowners Hope Hotline (888-955-HOPE), we see firsthand the commitment to offer consumers the best solution that meets their individual needs. We continue to work with key regulators, servicers, investors and non-profit counselors to make a positive difference in people’s lives by using all the tools available.”