Hope Now Loan Workout Pace Slows in May

July 2, 2008 No Comments »


Loan workouts totaled roughly 170,000 in May, about 10,000 shy of the April total, according to the latest report from Hope Now.

Of the 170,000 workouts completed during the month, 70,000 lucky homeowners were able to get their hands on a loan modification and roughly 100,000 received less favorable repayment plans.

The group said that if the monthly rate continues through June, the service would help approximately 519,000 homeowners avoid foreclosure in the second quarter, making it the biggest quarter since Hope Now began collecting data last July.

Since July 2007, Hope Now estimates that it has helped a substantial 1.7 million homeowners avoid foreclosure, though foreclosure sales still seem to be on the rise.

The industry alliance said 163,649 foreclosure sales took place in the months of April and May, easily on pace to top the previous quarter’s 198,172 total foreclosure sales.

In a related survey, Hope Now said that of approximately 718,000 subprime adjustable-rate mortgages scheduled to reset between January and May 2008, 5.3 percent had been modified and 45 percent were paid in full via a sale or refinance.

About 0.5 percent, or 1,800 of the loans that were current at the time of reset, have begun the foreclosure process.

Those numbers were reported by nine companies representing roughly 60 percent of outstanding subprime loans.

Hope Now includes a number of mortgage lenders, housing counselors, and loan servicers, including Wells Fargo, Litton Loan Servicing, and ACORN.

(photo: psd)

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