Private Mortgage Modifications Triple HAMP Mods in July

September 2, 2010 No Comments »

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A total of 120,351 permanent mortgage modifications were completed in July via proprietary programs, according to foreclosure prevention alliance Hope Now.

That’s more than triple the 36,695 loan modifications made permanent via the Home Affordable Modification Program (HAMP) during the same month.

However, the July numbers were slightly lower than the 120,811 reported in June.

Meanwhile, foreclosure starts totaled 226,664 in July, a 22 percent increase from June and nearly double the number of loan mods completed.

And foreclosure sales climbed 12 percent month-to-month to 97,951.

The one bit of good news is that the number of borrowers entering 60-plus day delinquency fell five percent from June and 20 percent from the beginning of the year to 3.2 million.

“We believe this is a function of borrowers moving through the pipeline of all eligible program offerings (government and private industry) to exhaust all alternatives,” said Faith Schwartz, senior adviser for Hope Now, in a release.

“The increase in foreclosures is also a reflection of the continued challenges facing the economy, particularly the level of unemployment nationwide. We remain hopeful that as jobs start to come back the housing market will stabilize.”

So far in 2010, loan servicers have completed 1.13 million loan modifications through both HAMP and private mortgage lender-based programs.

The big question is how many will eventually re-default?

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