Nearly 503,000 homeowners received some type of workout from mortgage servicers during the first quarter, according to a report released today by Hope Now.
Of the 502,500 prime and subprime loan workouts, approximately 323,000 were repayment plans and 179,500 were more favorable loan modifications.
On a positive note, loan modifications represented 44 percent of all subprime loan workouts during the first quarter, which is double the 2007 rate.
And in the month in March, represented 49 percent of all subprime workouts, revealing that servicers are increasingly more willing to provide meaningful change to struggling borrowers.
The foreclosure prevention group said there were 431,171 subprime 2/28 and 3/27 hybrid loans scheduled to reset during the first quarter, and of these, 14,418 have been modified and almost 64 percent were modified for five years or more.
About half (47%) of all these resetting loans were paid in full via a refinance or a sale.
Since July, Hope Now loan servicers have provided loan workouts for roughly 1,376,000 homeowners.
As always, if you’re having trouble making your mortgage payment, you can contact the HOPE Hotline free of charge at 1-888-995-HOPE to explore the available options.
(photo: editor)
Related Topics:
