Loan Modifications Remain Stable in February

HOPE NOW, a private sector alliance of mortgage servicers, investors, mortgage insurers, and non-profit counselors, released its February 2014 loan modification data. The group reported that an estimated 42,000 homeowners received permanent modifications in the month, including modifications from proprietary programs and the government's Home Affordable Modification Program (HAMP).

Modifications decreased in February from January by 5 percent.

Since it began tracking data in 2007, 6.93 million modifications have been recorded by HOPE NOW. Approximately 5.6 million homeowners have received proprietary loan modifications, while approximately 1.3 million homeowners have utilized HAMP modifications.

For the month of February, HOPE NOW reports that foreclosure sales declined significantly to approximately 36,000 sales. Compared to January's sales of 48,000, foreclosure sales decline by 24 percent. Foreclosure starts totaled roughly 69,000, an 8.0 percent decline from January.

Delinquencies of 60 days or more were under two million for the second straight month at approximately 1.98 million.

The group reported, "For comparison purposes, there were 4.13 million homeowners in 60+ day delinquency in December of 2009—more than twice the current number."

Eric Selk, Executive Director of HOPE NOW, said, "Mortgage solution data collection continues to be a focus for HOPE NOW. We are pleased by the efforts of our servicer members, non-profit partners and government partners on behalf of struggling homeowners. Even with serious delinquencies in decline, the industry continues to offer homeowners a multitude of sustainable and viable solutions that are alternatives to foreclosure."

Short sales decreased in February to 11,000, an 8 percent drop from January's figure of 12,000. Completed deed-in-lieu transactions were roughly 2,300 in February, down 8 percent from 2,500 transactions in January.