August data from HOPE NOW show foreclosure starts dropped 21% to 224,000 and foreclosure sales dropped 16% to 75,000 from July.
Workout plans were up 28% to 325,000. Repayment plans increased by 38%, and loan modifications were up by 7%.
‘Our data suggests a correlation between the drop in foreclosures and the increase in workout solutions to help at-risk borrowers,’ says Faith Schwartz, executive director of HOPE NOW.
HOPE NOW survey data show a 6% increase in homeowners who are 60+ days delinquent – 3.3 million borrowers in August from 3.1 million in July. This number may include Home Affordable Modification Program trial modifications that are not yet permanent, HOPE NOW says.
SOURCE: HOPE NOW