Hope Now: Workouts, Foreclosure Sales Slow

October 2, 2008 No Comments »


Last month, foreclosure prevention alliance Hope Now executed 188,931 workout plans, a slight dip from the 192,220 carried out in July.

More than half (110,078) were simple repayment plans, while 78,853 were actual loan modifications, where mortgage rates and terms are eased, providing more meaningful change for the borrower.

The group said 80,283 of the workouts were completed for prime borrowers, while the remaining 108,649 were carried out for subprime borrowers.

While workouts slowed, foreclosure sales also inched down during the month, falling to a total of 86,594 during August, compared with 91,902 in July.

However, this quarter’s numbers will still greatly exceed the 135,330 foreclosure sales completed in the third quarter of 2007.

Since July 2007, Hope Now claims it has helped 2.26 million homeowners avoid foreclosure, though nearly one million homes have also been lost to foreclosure during that time.

The alliance has sent nearly 1.8 million letters to at-risk homeowners, getting a near-17 percent response rate, compared to the 2-3 percent rate servicers generally receive when they send their own mailers to troubled homeowners.

Though Hope Now continues to report strong numbers, the State Foreclosure Prevention Working Group claims efforts to help homeowners are on the decline, with fewer borrowers actually retaining their homes via loss mitigation efforts.

(photo: joh)

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