Residential servicers that are part of the HOPE NOW alliance completed 112,022 loan modifications in November, a 10% drop from the previous month as proprietary modifications fell to their lowest level since the fall of 2009.

HOPE NOW reported that its members completed 29,970 HAMP modifications in November, up 26% from the prior month.

Proprietary modifications dropped to 82,050, down nearly 19% from October. This marks the first time the monthly number of proprietary modifications dropped below the 100,000 mark since February.

HOPE NOW maintains that for every foreclosure sale that occurred in November two permanent modifications were completed.

Foreclosure sales fell 20% in November to 55,140 transactions, compared to 69,200 in October.

The servicer alliance also reported that foreclosure starts rose nearly 8% from October to 221,095 in November.

Overall, servicers have completed 1.65 million loan modifications since January 2010 with less than a third, 482,700, ending up in a mod that meets the government's Home Affordable Modification Program (HAMP) specifications.

HOPE NOW servicers are required to consider troubled homeowners for a HAMP mod first before a proprietary one, or another workout plan.

The Office the Comptroller of the Currency, and Office of Thrift Supervision recently reported that a HAMP mod, on average, reduces the borrower's monthly payment by $585. A proprietary mod reduces the monthly payment by $396.

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