In May, mortgage lenders helped 249,000 homeowners complete workout solutions to help these borrowers stay in their homes, according to HOPE NOW.
HOPE NOW members and the mortgage lending industry modified 101,000 mortgages compared with 121,000 in April, a 16.5% drop. Additionally, 148,000 repayment plans were initiated, a 5.7% increase from Aprils 140,000.
The drop in modifications and increase in repayment plans from April can be partially attributed to the industrys implementation of the Obama administrations home retention program.
There is a three month trial period before a loan modification can be completed under the Home Affordable Modification Program (HAMP). As a result, a number of workouts that will end up being modifications are only currently reported as repayment plans or trial modifications. Many of these trial modifications will only result in formal reporting of modifications after 90 days.
HOPE NOW Executive Director Faith Schwartz cited the partnership between HOPE NOW and the banking industry, investors, non-profits and the Obama administration as the reason behind the success in helping a growing number of at risk borrowers.
The current HOPE NOW data listed an increase to almost 3.0 million from 2.9 million in 60 day plus delinquencies. Foreclosure starts increased from April to May, up to 257,000 from 243,000 while completed foreclosure sales rose to 83,000 from 63,000.