HOPE NOW has announced that 385,468 homeowners received permanent loan modifications from mortgage servicers during the first half of this year, with 275,324 homeowners receiving proprietary loan modifications and another 110,144 homeowners receiving loan modifications completed under the Home Affordable Modification Program.
According to HOPE NOW, the mortgage industry has completed 5.6 million total permanent loan modifications for homeowners since 2007. Of the proprietary modifications completed in the first half of this year, approximately 79% (218,000) included reduced monthly principal and interest payments, and 90% (248,000) had fixed interest rates of five years or more. Additionally, proprietary loan modifications that reduced principal and interest payments by more than 10% represented 72% (199,000) of the total from January through June.
‘HOPE NOW data for the first half of 2012 shows a continued trend of reduced late stage delinquencies, year over year,’ says Faith Schwartz, executive director of HOPE NOW. ‘However, efforts and resources have expanded to assist all at-risk homeowners in finding solutions to avoid foreclosure, where possible.’