Nearly half of the mortgages that were in foreclosure in December 2013 were still in foreclosure as of the end of August, according to the Black Knight Financial Services August Mortgage Monitor released earlier in the week. Black Knight reported that even though foreclosure inventory was down both month-over-month and year-over-year, 49 percent of mortgage loans nationwide that were in foreclosure in December of last year remained in that state as of August 31, 2014.
The Black Knight data showed that only 2 percent of borrowers who were in foreclosure last December had fully paid off their mortgage loans by the end of August. Eight percent of borrowers in foreclosure in December 2013 had worked their way up to being current on their mortgages by the end of August. Four percent had sold their homes through a short sale or third party during that eight month period, and 23 percent had settled through active REO or REO liquidation.
Fannie Mae announced earlier this week it will be adjusting the required interest rate for its Standard Modification Program. The rate increase from 4.375 percent to 4.5 percent will be effective for all Fannie Mae mortgage loans approved for the Standard Modification Program on or after October 14, 2014. This will be the sixth adjustment to the interest rate of the Standard Modification Program since Fannie Mae launched the program in January 2012 as a way to help borrowers who are not eligible for the Home Affordable Modification Program avoid foreclosure.