Servicers completed more than 120,000 proprietary loan modifications in July – more than three times the number of mods completed through the federal Home Affordable Modification Program (HAMP), HOPE NOW reports. As reported by U.S. Treasury Department, servicers executed 36,695 HAMP modifications in July.
From June to July, the number of proprietary modifications fell slightly, from 120,811 to 120,351. The number of 60+ day delinquencies also decreased, falling 5%, HOPE NOW says.
Foreclosure starts, on the other hand, increased from 186,395 in June to 226,664 in July – a 22% jump.
Completed foreclosure sales also increased, growing 12% to 97,951 in July.
Principal-and-interest reduction modifications represented 86% of all proprietary modifications, HOPE NOW data show.
Faith Schwartz, HOPE NOW's senior adviser, says the increase in foreclosure starts and sales is the result of borrowers' exhausting the loss mitigation options available to them.
‘The increase in foreclosures is also a reflection of the continued challenges facing the economy, particularly the level of unemployment nationwide,’ she adds. ‘We remain hopeful that as jobs start to come back, the housing market will stabilize.’
SOURCE: HOPE NOW