The Hope Now Alliance May mortgage loan data showed that foreclosure sales fell to 68,000 in May, a 7% drop from the 73,000 recorded in April, and marking the second consecutive month of decline.
The report also showed an 8% increase in foreclosure starts to 176,000 for the month, up from 163,000 in April.
Data on loan modifications for homeowners in May remained relatively flat from the previous month at 85,000. The Hope Now report stated that of the total amount of modifications, about 53,000 were proprietary and 32,398 were completed under the Home Affordable Modification Program or HAMP.
“Additionally, performance of proprietary loan modifications remains strong, with 78% including reduced principal and interest payments and almost 90% including a fixed interest rate of five or more years. These facts translate into affordable and sustainable loan modifications for homeowners,” said Hope Now Executive Director Faith Schwartz.
The 60+ day delinquencies also remained nearly unchanged for the month at 2.67 million, versus 2.65 million in April.