According to HOPE NOW, mortgage servicers provided loan workouts to approximately 183,000 homeowners in April – the highest monthly total since the program was begun in July 2007.
‘These numbers clearly demonstrate that HOPE NOW is succeeding at helping homeowners avoid foreclosure and stay in their homes,’ states Faith Schwartz, executive director of HOPE NOW. ‘Foreclosure benefits no one: the borrower, community, lender and investor all lose.’
The April report from HOPE NOW estimates that on an industry-wide basis, the total number of loan workouts provided by mortgage servicers since July 2007 has risen to 1,558,854.
Approximately 106,000 of the prime and subprime loan workouts conducted by mortgage servicers in April were repayment plans, while approximately 77,000 were loan modifications. A summary table with all the April results can be found at www.hopenow.com/upload/misc/files/AprSummaryTable.pdf
A separate survey of subprime adjustable-rate mortgages determined that approximately 603,000 subprime loans were scheduled to reset between January and April of this year. A total of 30,545 (5.0%) of these loans have already been modified, and nearly 63% of these modifications are for five years or longer.
HOPE NOW also found that 273,000 (45%) of the subprime adjustable-rate loans that were current at reset were paid in full when the homeowner refinanced the loan or sold the property. A limited number – 927 (0.3%) – of the loans that were current at their date of reset have started the foreclosure process.
Source: HOPE NOW
