HOPE NOW Servicers Provided Nearly 503,000 Loan Workouts 1Q 2008

Almost 503,000 homeowners were able to stay in their homes during the first quarter of 2008 because of loan workouts provided by mortgage servicers, according to a new report issued by HOPE NOW.

Specifically, the alliance found the following: On an industry-wide basis, servicers provided loan workouts for about 1,376,000 homeowners since July 2007; of the 502,500 prime and subprime loan workouts that servicers provided to homeowners during the first quarter of 2008, approximately 323,000 were repayment plans and 179,500 were loan modifications; during the first quarter of 2008, loan modifications represented 44% of all subprime loan workouts, which is double the 2007 rate; and in March, loan modifications were 49% of all subprime workouts.

In addition, says HOPE NOW, there were 431,171 subprime 2/28 and 3/27 loans that were scheduled to reset during the first quarter of 2008. A total of 14,418 of these loans have been modified, and nearly 64% were modified for five years or more, while 203,000 of these loans (47%) were paid in full through refinancing or sale.

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