Hope Now April Workouts Hit New High

May 30, 2008 No Comments »

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Hope Now reported today that 183,000 loan workouts were completed in April, the highest monthly total since the foreclosure prevention program launched last July.

The number of workouts represented a 7.6 percent increase from the 160,000 announced one month earlier.

However, 106,000 of the workouts were simple repayment plans that just slow the payment process without reducing loan balance or modifying loan terms.

Actual loan modifications, where a loan balance or mortgage rate is reduced, made up the other 77,000 workouts completed during the month.

Based on those numbers, about 42 percent of borrowers are now receiving loan modifications, compared to roughly 36 percent during the first quarter.

Since July, Hope Now loan servicers have provided loan workouts for roughly 1.6 million homeowners.

To give you an idea of progress, of the approximately 603,000 subprime loans scheduled to reset between January and April 2008, five percent have been modified and 45 percent were paid in full via a refinance or sale.

Hope Now director Faith Schwartz noted that the numbers proved the program was making a difference, though the group also reported that 80,926 homes were lost to foreclosure during the month, a 12 percent increase from the 72,024 foreclosures reported in March.

Hope Now is made up of scores of mortgage lenders and servicers, including Countrywide, Wells Fargo, Litton Loan Servicing, and many others.

As always, if you are an at-risk borrower, you can contact Hope Now free of charge at 1-888-995-HOPE.

(photo: chazwags)

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