Loan Mods Rise in August, Foreclosures Remain Steady
Servicers completed 67,000 mortgage loan modifications in August, bringing the total for the year to 580,000, according to HOPE NOW, a voluntary private-sector alliance.
Loan modifications increased 8 percent in August when compared to the month prior, according to HOPE NOW; and year-to-date loan modifications outpace foreclosure sales by about 142,000.
The approximately 67,000 modifications completed by servicers in August include 48,000 proprietary modifications and 19,069 modifications completed through the government’s Home Affordable Modification Program (HAMP).
About 23,000 short sales also took place in August, HOPE NOW’s data shows.
“The bottom line is that there are more tools for consumers than ever before to handle mortgage challenges,” said Eric Selk, executive director at HOPE NOW, with the release of the alliance’s August data.
The majority of proprietary modifications completed in August came with fixed interest rates of at least five years and reduced monthly payments and principal, according…read more