Mortgage loan servicers have provided 1,178,000 loan workouts to struggling borrowers since last July, according to the most recent study released today by Hope Now.
Hope Now servicers, who cover roughly two-thirds of the mortgage industry for prime and subprime loans, executed 309,700 loan workouts during the first two months of 2008, matching the pace set in the fourth quarter.
During January and February 2008, these servicers provided approximately 196,200 repayment plans and 113,500 loan modifications to borrowers nationwide.
And though the numbers seemed to plateau, loan modifications comprised of 48 percent of all subprime loan workouts in 2008, more than double the rate in 2007.
Repayment plans are generally less favorable than loan modifications because they simply delay the inevitable, whereas the latter actually results in a lower mortgage rate and a more affordable loan.
She noted that payment shock has become less of an issue in recent months, leaving fewer borrowers in need of an actual loan modification to retain homeownership.
Although that said, there were 133,450 foreclosure sales during January and February, including 55,026 tied to prime loans and 78,424 tied to subprime loans, outpacing previous quarters.
If you’re a borrower struggling to make your monthly mortgage payment, you can contact Hope Now for free at 1-888-995-HOPE.