March 11, 2011 (Jeff Alan)
The amount of permanent loan modifications through the HOPE NOW alliance of mortgage servicers, investors, and insurers decreased to just under 101,000 in January from 111,000 in December 2010. Of the January total, 73,000 were proprietary modifications, while 28,000 permanent modifications were done through the governments Home Affordable Modification Program (HAMP).
Proprietary modifications are terms arranged privately between a borrower and their lender.
According to Hope Now, while permanent modifications did drop in January, they still outnumbered completed foreclosure sales, which rose sharply to 73,000 homes in the same month, up from 58,000 in December.
Foreclosure starts fell to 206,000 homes in January, down from 232,000 in December and the second-lowest tally since last June. HOPE NOW estimates that there are 3.08 million home loans 60 days past due in January, up from 3.03 in December.
Tags: HOPE NOW, permanent loan modifications, mortgage servicers, investors, insurers, proprietary modifications, foreclosures