The number of proprietary loan modifications completed by the nation’s mortgage servicers fell for the second consecutive year according to HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors.
For all of 2012, a total of 661,363 homeowners received permanent, proprietary loan modifications, down 4.5 percent from the 692,385 loan modifications in 2011.
Including loan modifications made under the federal government’s Home Affordable Modification Program (HAMP), total modifications fell from 1,046,062 in 2011 to 850,034 in 2012.
Of the proprietary loan modifications completed in 2012, eighty-two percent (543,010) included a reduction in monthly principal and interest payments, with 75 percent (495,566) receiving a reduction of more than 10 percent. In addition, ninety percent (598,017) of the loan modifications received fixed interest rate loans of five years or more.
Short sales increased by more than 13 percent from the previous year with a total of 422,605 short sales completed in 2012 compared to 372,168 in 2011.
Foreclosure starts fell every quarter during the year with the largest decline reported between the third and fourth quarters. Foreclosure starts declined by 14.8 percent from 2011, falling from 2,259,108 to 1,923,872 in 2012.
Completed foreclosure sales also declined from the previous year, falling from 840,186 in 2011 to 779,220 in 2012.
The number of homeowners that were at least 60 days or more past due fell during the year, declining from 2,786,439 million loans in 2011 to 2,518,381 million in 2012.
Tags: HOPE NOW, private sector alliance, mortgage servicers, loan modifications, fixed rate mortgages, delinquencies, proprietary modifications, foreclosure starts, foreclosure sales
Reported by Shirley Allen