HOPE NOW: 113K October Mods; Foreclosure Sales Down 18%
HOPE NOW reported 113,000 mortgage assistance actions by its members in October as foreclosure sales reached a nearly 10-year low.
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 loan modifications in all forms fell in October from September and from a year ago as the pool of eligible borrowers continued to shrink. The estimated 19,000 reported foreclosure sales are the lowest total since HOPE NOW started tracking data in mid-2007.
“At nearly a six to one margin, data indicate that homeowners are avoiding foreclosure and are receiving mortgage assistance,” said HOPE NOW Executive Director Eric Selk. “This metric is important as it shows the breadth of solutions available to at-risk homeowners at the time of first notice of default that are alternatives to foreclosure.”
HOPE NOW reported 28,000 permanent loan modifications, including 19,000 through proprietary programs and 8,900 through the government’s Home Affordable Modification Program.
Other key metrics month over month:
–Loan Modifications: 28,000 completed in October vs. 31,000 in September, a decrease of 10%.
–Short sales: 4,800 completed in October vs. 5,100 in September, a decrease of 7%.
–Deed in-lieu: 1,300 completed in October vs. 1,600 in September, a decrease of 19%.
–Foreclosure starts: 46,000 in October vs. 47,000 in September, a decrease of 3%.
–Foreclosure sales: 19,000 in October vs. 24,000 in September, a decrease of 18%.
–Serious delinquencies: 1.47 million in October vs. 1.49 million in September, virtually unchanged.
Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the third quarter.
Key Metrics year over year:
–Loan Modifications: 28,000 completed in October vs. 29,000 in October 2015, a decrease of 5%.
–Short sales: 4,800 completed in October vs. 6,700 in October 2015, a decrease of 29%.
–Deed in-lieu: 1,300 completed in October vs. 1,500 in October 2015, a decrease of 12%.
–Foreclosure starts: 46,000 in October vs. 56,000 in October 2015, a decrease of 18%.
–Foreclosure sales: 19,000 in October vs. 28,000 in October 2015, a decrease of 31%.
–Serious delinquencies: 1.47 million in October vs. 1.63 million in October 2015, decrease of 10%.
The full data set for October 2016 is available at www.hopenow.com.
“Although modifications decreased this past month, nearly 30,000 homeowners receive a permanent modification each month,” Selk said. “Furthermore, those homeowners that do not receive a modification are still receiving assistance through other foreclosure alternatives.”
Selk said he was “pleased” to see that total modification actions still significantly outpace foreclosure sales on a consistent basis. “We are close to pre-crisis levels and that is good news,” he said. “Foreclosure starts and sales are at all-time lows, while solutions provided continue to hold steady. By reviewing the data from a year ago, we are also happy to see double digit decreases in foreclosure numbers and delinquency volume.”
