Around 63,000 homeowners received permanent, affordable loan modifications from mortgage servicers in July, bringing the total number of homeowners helped so far in 2013 to 519,000, MBA NewsLink reported Sept. 20.
The data was provided by HOPE NOW, a voluntary, private-sector alliance of mortgage servicers, investors, mortgage insurers and nonprofit counselors.
HOPE NOW reported that the total number of loan modifications increased to 6.6 million since 2007. That figure includes 5.36 million proprietary loan modifications and 1.236 million Home Affordable Modification Program modifications. The July breakdown was 50,000 proprietary modifications to borrowers and 13,183 HAMP modifications, MBA NewsLink reported.
The data showed an overall reduction in foreclosures through the first seven months of the year; 378,000 foreclosure sales so far in 2013 compared to 458,000 foreclosure sales a year prior. For the month of July, HOPE NOW reported 59,000 foreclosure sales completed — a 14 percent increase from June when 52,000 foreclosure sales were reported. Foreclosure starts increased 5 percent to 102,000 in July compared to 98,000 in June.
According to MBA NewsLink, the report showed that short sales totaled 26,000 in July, which is unchanged from June. Since the nonprofit began tracking short sale data in 2009, 1.32 million short sales have been completed. Delinquencies of 60 days or more edged up 1 percent to 2.24 million in July from 2.21 million in June.
HOPE NOW reported that 99 percent (or 50,000) of the total loan modifications made so far this year included fixed interest rates of five years or more; modifications with reduced principal and interest monthly payments made up 82 percent or 41,000; and modifications with reduced principal and interest payments of more than 10 percent accounted for 81 percent or 40,000.
“Data shows a consistent trend, month over month, pointing toward market stabilization,” Erik Selk, HOPE NOW executive director, told MBA NewsLink. “Loan modifications and short sales continue to outpace foreclosure sales … while progress is being made in the housing market, there is still a need for aggressive outreach and education by mortgage servicers, government agencies, non-profits and local groups to at-risk homeowners.”
Read the full data set for July 2013.