Two-thirds of the 93,924 foreclosure sales in June were originally financed with prime mortgage loans, according to figures released this week by the HOPE NOW Alliance. It was the first time since HOPE NOW began collecting data that prime foreclosure sales outpaced subprime sales by two-to-one.
Foreclosures involving subprime mortgages have subsided over the past year. HOPE NOW’s survey data suggests the peak in subprime foreclosure sales occurred during the second quarter of 2008. The largest gain in foreclosure sales backed by prime loans occurred in the recently ended second quarter of 2009.
HOPE NOW’s report also showed a 25 percent surge in loan workouts during the month of June. The Alliance said mortgage lenders helped 310,000 homeowners avoid foreclosure – 96,000 loans were modified and 214,000 repayment plans were initiated.
June marked the second straight month that HOPE NOW’s participating servicers reported a drop in modifications (down 5.1 percent) and a significant increase in repayment plans (up 44.9 percent). The imbalance is primarily attributed to servicer participation in the Obama administration’s Home Affordable Modification Program (HAMP). Under the government’s guidelines, loans are subject to a three-month trial period and are reported as repayment plans until the modification becomes permanent after 90 days.
Faith Schwartz, executive director of the HOPE NOW Alliance, commented, “I am proud of the continued progress made by HOPE NOW servicers and am confident that they are aggressively and proactively using HAMP, as well as other successful foreclosure prevention programs, to help as many homeowners as possible. These efforts are in the best interest of consumers as well as the U.S. economy overall.”
Since January, 2009, HOPE NOW says more than 1.5 million homeowners have been helped through mortgage workout plans. However, the Alliance’s study shows that the number of distressed borrowers continues to grow. Those 60 or more days behind on their mortgage payments increased from 3 million to almost 3.1 million in June, HOPE NOW reported.
Last week, HOPE NOW and its partners hosted an outreach event with administration and local officials in foreclosure-ravaged Las Vegas, providing more than 1,500 at-risk homeowners in the area with the opportunity to meet directly with lenders and non-profit counselors. And today marks the start of a two-day event in Phoenix, another market struggling with high foreclosure rates and plummeting property values. Since the beginning of this year, HOPE NOW’s consumer outreach efforts have helped over 15,000 homeowners.
Foreclosures involving subprime mortgages have subsided over the past year. HOPE NOW’s survey data suggests the peak in subprime foreclosure sales occurred during the second quarter of 2008. The largest gain in foreclosure sales backed by prime loans occurred in the recently ended second quarter of 2009.
HOPE NOW’s report also showed a 25 percent surge in loan workouts during the month of June. The Alliance said mortgage lenders helped 310,000 homeowners avoid foreclosure – 96,000 loans were modified and 214,000 repayment plans were initiated.
June marked the second straight month that HOPE NOW’s participating servicers reported a drop in modifications (down 5.1 percent) and a significant increase in repayment plans (up 44.9 percent). The imbalance is primarily attributed to servicer participation in the Obama administration’s Home Affordable Modification Program (HAMP). Under the government’s guidelines, loans are subject to a three-month trial period and are reported as repayment plans until the modification becomes permanent after 90 days.
Faith Schwartz, executive director of the HOPE NOW Alliance, commented, “I am proud of the continued progress made by HOPE NOW servicers and am confident that they are aggressively and proactively using HAMP, as well as other successful foreclosure prevention programs, to help as many homeowners as possible. These efforts are in the best interest of consumers as well as the U.S. economy overall.”
Since January, 2009, HOPE NOW says more than 1.5 million homeowners have been helped through mortgage workout plans. However, the Alliance’s study shows that the number of distressed borrowers continues to grow. Those 60 or more days behind on their mortgage payments increased from 3 million to almost 3.1 million in June, HOPE NOW reported.
Last week, HOPE NOW and its partners hosted an outreach event with administration and local officials in foreclosure-ravaged Las Vegas, providing more than 1,500 at-risk homeowners in the area with the opportunity to meet directly with lenders and non-profit counselors. And today marks the start of a two-day event in Phoenix, another market struggling with high foreclosure rates and plummeting property values. Since the beginning of this year, HOPE NOW’s consumer outreach efforts have helped over 15,000 homeowners.
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