The nation’s mortgage lenders modified fewer mortgages to help keep delinquent borrowers in their homes this past summer, even though mortgage starts and sales increased, a new survey shows.
Lenders have been working to modify loans of borrowers who have fallen behind on payments by lowering monthly payments, lowering interest rates or in some cases by reducing the amount owed.
Hope Now, a coalition of loan servicers, investors and counselors, reported that loan mods fell nationwide to 55,828 in August.
That compares to monthly averages ranging from 84,000 to 115,000 loans modified a month in the previous nine months.
In addition, Hope Now reported:
221,746 loans were made in the third quarter ending in August.
That’s down from 345,197 loan mods made in the fourth quarter of 2010.
Lenders have modified nearly 4.9 million loans for homeowners since Hope Now began gathering data in 2007.
Of those, only 791,399, or 16.3%, of the loans were modified under the federal Home Affordable Modification Program, or HAMP.
Completed foreclosure sales increased 5% in August to 68,000, compared to 65,000 in July.
Foreclosure starts increased by 18% to 218,000 in August, up from 185,000 in July.
Read More from the Article Source: http://mortgage.ocregister.com/2011/09/30/fewer-loan-modifications-completed/48523/
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