Hope Now, a foreclosure prevention coalition of mortgage servicers, lenders, and housing counselors, carried out 225,000 workouts last month, 13,000 more than the record it set a month earlier.
Since the beginning of the year, roughly 1.7 million foreclosures have “been prevented,” by the alliance, though it has yet to be seen if that will actually hold true over the long term.
The group is on pace to execute more than 2.2 million workouts in 2008, a 45 percent increase from 2007, bringing the program total to 2.7 million since its inception last July.
Last month, 103,000 loan modifications and 122,000 less favorable repayment plans were completed, new records for each type of workout.
Over the past 90 days, modifications have increased by 24 percent, while repayment plans have crept up 9.8 percent.
Loan modifications are expected to take on a larger share of the workouts going forward, “as economic conditions warrant.”
“The growing use of loan modifications is not an accident,” said Faith Schwartz, HOPE NOW’s executive director. “The U.S. economy is still troubled and that means that changing the terms of a loan is an increasingly appropriate way to keep more homeowners in their homes.”
“Hope Now members are likely to continue to consider them as long as the broader economy continues to struggle.”
Here’s an interesting tidbit: For the fifth consecutive month, the number of foreclosure starts for prime loans exceeded those of subprime.