Foreclosure Preventions On Pace For Record

HOPE NOW says that mortgage servicers helped approximately 170,000 homeowners avoid foreclosure in May.

If this monthly rate continues through June, the mortgage lending industry will help approximately 519,000 homeowners in the second quarter of 2008 avoid foreclosure and stay in their homes, the largest number of workouts in any quarter since HOPE NOW began to compile data in July 2007.

Since July 2007, HOPE NOW estimates that more than 1.7 million homeowners have avoided foreclosure because of industry efforts. ‘The May report demonstrates that HOPE NOW is helping homeowners avoid foreclosure,’ says Faith Schwartz, HOPE NOW executive director. ‘As promised, the industry has accelerated the pace at which it is helping homeowners.’

The HOPE NOW report estimates that on an industry-wide basis:

  • The total number of foreclosures prevented by mortgage servicers since July 2007 has risen to more than 1.7 million;

  • Mortgage servicers provided loan workouts for approximately 170,000 at-risk borrowers in May; and

  • Approximately 100,000 of the prime and subprime loan workouts provided by mortgage servicers in May were repayment plans, while approximately 70,000 were loan modifications.

The numbers reported by HOPE NOW differ from those recently reported by the Office of the Comptroller of the Currency and are likely to differ from those expected to be reported soon by the Office of Thrift Supervision. They may also differ from those reported by other regulators.

Source: HOPE NOW

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