HOPE NOW: Mortgage Industry Assisted 344K Homeowners in Q3

HOPE NOW reported its mortgage industry members completed 344,000 non-foreclosure actions to at-risk homeowners in the third quarter.

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 permanent loan modifications in the third quarter totaled 102,000, while short sales totaled 17,000. Of the 102,000 loan modifications completed, 69,000 homeowners received proprietary loan modifications and 32,586 homeowners received loan modifications completed under the Home Affordable Modification Program

The remaining 225,000 actions included repayment plans, deeds in lieu, other retention plans and liquidation plans. This compared to 75,000 completed foreclosure sales from July to September, continuing a trend of non-foreclosure solutions outpacing foreclosure sales.

Other metrics for the third quarter compared to the second quarter:

–Foreclosure sales decreased from the previous quarter–75,000 in Q3 vs. 81,000 in Q2, a decrease of 8%.
–Foreclosure starts increased from the previous quarter–157,000 in Q3 vs. 152,000 in Q2, an increase of 4%.
–102,000 loan modifications completed in Q3, compared to 100,000 in Q2, an increase of 2%.
–Serious delinquencies of 60 days or more declined from 1.54 million in Q2 to 1.53 million in Q3, a 1% decline.
–Total non-foreclosure actions were 344,000 in Q3, compared to 335,000 in Q2–an increase of 3%.
–Short sales for Q3 totaled 17,000, compared to 18,000 in Q2, a decrease of 10%.

Q3 2016 vs. Q3 2015 – Foreclosure Sales Down 6%
There was a decrease in both foreclosure sales and starts, compared to the same period of time last year. The 75,000 foreclosure sales in Q3 2016 represented a 6% drop from Q3 2015 (80,000). Likewise, foreclosure starts were 157,000 in Q3, representing a 2% decline compared to Q3 2015 (159,000).

Metrics from One Year Ago:
–Total actions for Q3 were 344,000 vs. 333,000 for Q3 2015, an increase of 3%.
–Loan mods for Q3 totaled 102,000 vs. 98,000 for Q3 2015, an increase of 4%.
–Short sales completed for Q3 totaled 17,000 vs. 21,000 for Q3 2015, a decrease of 20%.
–Deeds in lieu for Q3 totaled 4,700, an increase of 6% from Q3 2015 (4,400).
–Delinquencies of 60+ days were 1.53 million for Q3, compared to 1.65 million for Q3 2015, a decrease of 8%.

Month over Month Metrics:
–Total non-foreclosure actions were 112,000 in September vs. 119,000 for August, a decrease of 6%
–Completed loan modifications totaled 31,000 for September vs. 36,000 for August, a decrease of 15%
–Foreclosure sales were 24,000 in September vs. 26,000 for August, a decrease of 8%.
–Foreclosure starts were estimated at 47,000 in September vs. 58,000 for August, a decrease of 19%.
–Delinquencies of 60+ days totaled 1.49 million for September vs. 1.52 million in August, a decrease of 2%.

The full data set for Q3 2016 can be found at www.hopenow.com.

“While the delinquency numbers continue to drop (under 1.5 million in September), we are still very focused on markets where recovery has been slower and still need assistance,” said HOPE NOW Executive Director Eric Selk. “We continue to take a localized approach when visiting these communities by targeting the areas of highest need. Despite the decreasing loss mitigation efforts, our members remain committed to serving those homeowners that are experiencing financial difficulties with their mortgage.”