Foreclosure Sales Outpace Modifications for January

By: Esther Cho 03/05/2012

During January, 73,767 homeowners received permanent loan modifications from mortgage servicers, according to modification data released by HOPE NOW, a voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors.

While the January numbers are a decrease compared to the previous two months, it was a record-breaking month for foreclosure sales.

For the first time since October 2009, foreclosure sales, which reached 78,734, outpaced loan modifications.

About 79,061 loans received modifications in December 2011, and 83,825 were modified in the previous month of November.

For foreclosure sales, the numbers were up compared to previous months, with 69,616 foreclosure sales in December and 70,626 in November.

Of the approximately 74,000 who received modifications, about 56,000 were non-government proprietary modifications and 17,992 were through the government’s Home Affordable Modification Program (HAMP), as reported by US Treasury Department.

Loan modifications with reduced principal and interest payments years or more, afor approximately 67 percent, or 37,547, of 5all proprietary modifications, down from the previous month’s figures at 82 percent, or 45,407.

Fixed-rate modifications, or those with an initial fixed period of 5 years or more, accounted for about 89 percent, or 49,845, of all proprietary modifications, up from the previous month, which stood at 81 percent, or 45,034.

“HOPE NOW and its members have charged full speed into 2012 in the ongoing collaborative efforts to assist at-risk homeowners,” said Faith Schwartz, executive director of HOPE NOW in a statement. “Loan modifications continue at a steady pace and proprietary mods continue to show real signs of sustainability and affordability for homeowners. This is important to note, as these characteristics are vital to housing market recovery.”