These proprietary loan modifications more than doubled the 512,712 carried out by the Treasury’s Making Home Affordable program (HAMP) during the same time period.
“The industry was able to offer almost 2 million permanent solutions for homeowners in 2010, which outpaced foreclosure sales of just over one million,” said Faith Schwartz, Executive Director of Hope Now, in a statement.
“We hope that the trend continues going forward as servicers and housing counselors remain committed to achieving sustainable mortgage solutions for at- risk homeowners.”
Loan modifications that reduced principal and interest mortgage payments accounted for approximately 81 percent (1 million) of all proprietary mods, a good thing since we know lower payments reduce the chance of re-default.
Meanwhile, completed foreclosure sales totaled approximately 1.07 million, compared with 947,000 in 2009.
While the numbers are down, there were 2.6 million foreclosures started during the year, many of which are still in the foreclosure process for various reasons, including the robosigning scandal, lender backlog, and so forth.
And 60+ day delinquencies totaled 2.87 million as of December 2010, down 30 percent from 4.13 million a year earlier.