March
Is the Luck of the Irish with you?

Spring is right around the corner, as the first day of the season this year is Friday the 20th. Be sure to celebrate it with a trip to the park or a walk around the neighborhood! Also, let's not forget about St. Patrick's Day! There are sure to be many activities taking place so have fun, be safe and enjoy the festivities!

According to data released last Tuesday by HOPE NOW, the private sector alliance of mortgage servicers, investors, mortgage insurers, and non-profit counselors, 1.77 million homeowners have received workout solutions to avoid foreclosure from January to July of this year.

HOPE NOW estimates a 20 percent improvement in foreclosure mitigation activity in July 2009 compared to July 2007, when it started tracking data. The organization says this illustrates a clear trend in the decline of foreclosure sales to starts over time, and shows that the pace of workout solutions is continuing to grow.

“HOPE NOW Alliance members and the broader mortgage industry are helping more and more borrowers out of foreclosure,” the organization said in a press statement. “While there is more work to be done, the data demonstrates that mortgage servicers and their partners are responding to this ever increasing challenge.”

Foreclosure starts increased slightly – from 251,340 in June to 283,682 in July – but completed foreclosure sales decreased from 92,661 to 89,173.
Faith Schwartz, executive director of HOPE NOW, says the good news is that in July, over 253,000 borrowers were helped through loan work out solutions, while foreclosure sales dropped.

“This demonstrates the industry’s commitment to finding solutions to help people stay in their homes when possible,” Schwartz said. “Foreclosure intervention is working.”

In addition to HOPE NOW’s figures, the U.S. Department of the Treasury reported that servicers initiated 230,000 Making Home Affordable trial modifications in July.

Successful trial mods will be included in future HOPE NOW data. The organization says it expects modification numbers to dramatically increase once the mandated 90-day trial periods under the government program are completed.

The administration has set a goal for the industry to complete 500,000 loan modifications by November 1, 2009.

“We are encouraged by the number of HAMP trial modifications being offered by servicers,” Schwartz said. “Our HOPE NOW servicers and the mortgage industry, at large, are working hard to provide borrowers with solutions that best suit each individual situation. With unemployment expected to be a problem for a growing number of borrowers, the industry is exploring new solutions to help the increasing number of homeowners who may have difficulty paying their mortgage.”

HOPE NOW is steadfastly continuing its efforts to reach troubled borrowers with face-to-face homeowner and lender/servicer forums across the country.

So far, HOPE NOW and its partners from the Treasury, Fannie Mae, Freddie Mac, the Federal Reserve banks, NeighborWorks America, and other non-profit housing counselors have helped more than 40,000 at-risk borrowers with workout solutions through these outreach events. The next homeowner outreach event will take place in Boston, Massachusetts on September 17.