An estimated 1.05 million homeowners received permanent loan modifications from mortgage servicers in 2011, according to year-end data released Tuesday by HOPE NOW
That tally represents a 40 percent decline from the 1.76 million mods granted in 2010.
Of the more than 1 million loan mods completed last year, approximately 695,000 were done through servicers' own proprietary programs, while 353,677 were through the government's Home Affordable Modification Program (HAMP).
For the month of December, HOPE NOW reports there were approximately 80,000 loan modifications completed, which included 56,000 proprietary and 23,374 completed under HAMP.
HOPE NOWÃ¢â‚¬â„¢s industry data shows that loan modifications outpaced foreclosure sales for the fourth consecutive year. In 2011, there were approximately 843,000 foreclosure
sales completed for the year Ã¢â‚¬" a significant drop from the 1.07 million reported in 2010.
Faith Schwartz, executive director of HOPE NOW, says 2011 was yet another challenging year for the nationÃ¢â‚¬â„¢s housing market and the economy in general, but she notes that great strides continue to be made on behalf of at-risk families across the country.
Ã¢â‚¬Å“Since 2007, more than five million permanent, sustainable solutions have been offered and in the past two years, almost three million have been done,Ã¢â‚¬Â Schwartz said.
While HOPE NOWÃ¢â‚¬â„¢s data shows that total loan mods for 2011 were less than the number completed last year, Schwartz says it is important to note that foreclosure sales dropped by more than 21 percent from 2010.
Ã¢â‚¬Å“That is very significant in that it reinforces the assertion that the industry, and its various partners, has worked hard to ensure that every homeowner in trouble is apprised of all available options before going to foreclosure sale,Ã¢â‚¬Â Schwartz said.
HOPE NOWÃ¢â‚¬â„¢s analysis of last yearÃ¢â‚¬â„¢s loan modifications found that approximately 80 percent, or 555,000, of all proprietary modifications reduced borrowersÃ¢â‚¬â„¢ principal and interest payments.
In addition, fixed-rate modifications Ã¢â‚¬" which are structured with an initial fixed period of five years or more Ã¢â‚¬" accounted for 82 percent, or 572,000, of all proprietary modifications.
HOPE NOWÃ¢â‚¬â„¢s report shows that as of December 2011, there were 2.79 million mortgages 60 or more days delinquent, compared to 2.87 million in December 2010.