Total foreclosure alternatives were greater than 105,000, according to the May 2016 loan modification data produced by HOPE NOW (the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors).
“For the month of May, non-foreclosure solutions continued to outpace foreclosure sales by nearly a four to one margin,” stated Eric Selk, Executive Director for HOPE NOW. “This ratio is consistent with data from the past year and is evidence of the wide breadth of options available to homeowners in both the short and long term.”
This data shows foreclosure sale activity continuing its downward trend as it reaches its lowest level of the year during May with 27,000. These sales decreased 7 percent from May of 2015 and 4 percent from the month prior, April 2016.
Loan modifications for May 2015 totaled 29,000, reflecting a 22 percent decrease from May of the previous year and 7 percent lower than April of this year. Short sales decreased an additional 18 percent and deeds-in-lieu remained unchanged at 1,700 from May 2015.
Additionally, the foreclosure alternatives for May showed a ratio of approximately four options for every completed foreclosure sale. Included in the alternatives figure were roughly 29,000 permanent loan modifications. Also encompassed in this total are the modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP). Of the permanent loan modifications completed in the month of May, an estimated 22,000 were through proprietary programs and 7,113 were completed via HAMP.
“The number of non-foreclosure solutions (105k) in comparison to the number of foreclosure sales (27k) shows the mortgage servicers’ dedication to helping homeowners stay in their home. This end goal is something that all organizations in the industry can be proud of,” stated Selk.
Selk shares that in order to continue outreach for those struggling in the mortgage process, HOPE NOW will conduct events to serve as opportunities for borrowers to have conversations with their mortgage servicers or non-profit housing counselor and discuss solutions for their financial situations.
“Though the overall market continues to experience a decreasing number of foreclosure starts and sells,” said Selk, “some areas of the country remain affected by long and short term hardships.”