HOPE NOW: 99K Mortgage Modifications in November
HOPE NOW reported nearly 100,000 mortgage assistance actions for homeowners in November, saying foreclosure alternatives outnumbered completed foreclosure sales by a four-to-one margin.
HOPE NOW, a voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors of which the Mortgage Bankers Association is a founding member, said total loan modifications, short sales, deeds in lieu and workout plans in November totaled 99,000, compared to an estimated 24,500 foreclosure sales. November modifications included 19,000 modifications through proprietary programs and 7,691 completed through the Home Affordable Mortgage Program.
HOPE NOW Executive Director Eric Belk said nearly 40 percent of foreclosure alternatives were repayment plans, suggesting most families seeking help are experiencing short-term hardships. He said data continue to indicate recovery in the overall housing market.
“Key trends remain consistent with previous reports,” Selk said. “Specifically, foreclosure starts and foreclosure sales completed are at or near pre-crisis norms. Although fewer modifications are being reported, families are receiving assistance through foreclosure alternative solutions such as retention plans and formal repayment plans. This is reflective of an early intervention process that all servicers are employing. The goal is to keep families in their home and respond quickly when someone goes delinquent.”
Selk said another key indicator of positive market stability is a decline in serious delinquency, noting homeowners who are 60+ days delinquent have held steady a 1.65 million borrowers for the past five months. “This is a far cry from the nearly 2 million borrowers who were seriously delinquent just 18 months ago,” he said.
Other key metrics, month over month:
–Loan Modifications: 26,000 completed in November vs. 30,000 in October, a decrease of 16 percent.
–Short sale: 5,600 in November vs. 6,800 in October, a decrease of 14 percent.
–Deed in-lieu: 1,400 in November vs. 1,500 in October, a decrease of 10 percent.
–Foreclosure starts: 47,000 in November vs. 57,000 in October, a decrease of 17 percent.
–Foreclosure sales: 24,000 in November vs. 29,000 in October, a decrease of 14 percent.
–Serious delinquencies: 1.65 million in November vs. 1.66 million in October, unchanged.
Year over year:
–Loan Modifications: 26,000 completed in November vs. 33,000 in November 2014, a decrease of 21 percent.
–Short sales: 5,600 completed in November vs. 8,600 in November 2014, a decrease of 35 percent .
–Deed in-lieu: 1,400 completed in November vs 1,900 in November 2014, a decrease of 26 percent.
–Foreclosure starts: 47,000 in November vs. 60,000 in November 2014, a decrease of 22 percent.
–Foreclosure sales: 24,000 in November vs. 28,000 in November 2014, a decrease of 14 percent.
Serious delinquencies: 1.65 million in November vs. 1.97 million in November 2014, a decrease of 16 percent.
The full data set for November 2015 is available at www.hopenow.com.
