Hope Now Servicers Achieve Record Month

July 30, 2008 No Comments »

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Last month, Hope Now mortgage servicers completed more than 181,000 loan workouts, the highest monthly total since the foreclosure prevention program was launched last summer.

The June numbers led to the highest single quarter on record as well, with a hefty 522,000 workouts completed in the second quarter of 2008.

Hope Now projects that 1.9 million foreclosures have been prevented since last July through the loan workouts, which include both repayment plans and more favorable loan modifications.

More substantial is the fact that more than 50 percent of all subprime workouts carried out in June and during the second quarter were loan modifications, where rates and terms are improved to help borrowers actually turn things around.

Roughly 105,000 of the troubled homeowners who received assistance in June got repayment plans, while the remaining 76,000 received loan modifications.

On a month-to-month basis, June’s total exceeded the May total by about 14,000 loan workouts, bucking the downward trend seen in May, where workouts had slowed from April.

But it wasn’t all good news, as 163,649 foreclosure sales were reported in the April and May period, not far off the 198,000 total for all of the first quarter.

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

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