HOPE NOW: Foreclosure Sales at 8-Year Low

HOPE NOW said foreclosure sales activity reached its lowest level since 2007, while delinquencies fell by nearly half from five years ago.  

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 foreclosure sales fell to 27,000 August. By comparison, at the height of the foreclosure crisis (August 2010) saw the number of completed foreclosure sales at 100,000.  

The report said 60-day plus delinquencies fell to 1.69 million in August, unchanged from July but 14 percent lower than a year ago (1.96 million) and 47 percent lower than five years ago (3.16 million). Foreclosure starts totaled 56,000 in August, a 6 percent increase from July but down by 16 percent a year ago (67,000) and down by 77 percent from five years ago (241,000).  

HOPE NOW reported 118,000 non-foreclosure actions in August (loan modifications, short sales, deeds in lieu and workout plans) compared to 27,000 foreclosure sales. These included 33,000 permanent loan modifications under both proprietary programs (23,000) and the government’s Home Affordable Modification Program (9,489).  

“The best news from our data is that the overall health of the housing market has seen significant improvement from five years ago,” said HOPE NOW Executive Director Eric Selk. “Foreclosure and delinquency metrics are seeing a decrease of double digits. This points to a recovery of the market as mortgage delinquency is returning to normal levels.”  

Selk noted data suggest results of more “upstream” solutions being brought to the market. “If struggling families are being offered solutions quicker, the recovery rate will naturally happen quicker,” he said.  

Other key metrics (month over month):  

–Loan Modifications: 32,000 completed in August vs. 33,000 in July, a decrease of 3 percent.

–Short sales: 7,100 completed in August vs. 8,100 in July, a decrease of 12 percent. –Deed in-lieu: 1,600 completed in August vs. 1,600 in July, unchanged.

–Foreclosure starts: 56,000 in August vs. 53,000 in July, an increase of 6 percent.

–Foreclosure sales: 27,000 in August vs. 29,000 in July, a decrease of 7 percent.

–Serious delinquencies: 1.69 million in August vs. 1.68 million in July, unchanged.  

Year over year:

–Loan Modifications: 32,000 completed in August vs. 41,000 in August 2014, a decrease of 22 percent.

–Short sales: Approximately 7,100 completed in August vs. 9,900 in August 2014, a decrease of 28 percent.

–Deed in-lieu: 1,600 completed in August vs. 2,300 in August 2014, a decrease of 32 percent.

–Foreclosure starts: 56,000 in August vs. 67,000 in August 2014, a decrease of 16 percent.

–Foreclosure sales: 27,000 in August vs. 35,000 in August 2014, a decrease of 23 percent. –Serious delinquencies: 1.69 million in August vs. 1.96 million in August 2014, a decrease of 14 percent.  

The full data set for August 2015 is available at www.hopenow.com.