The current data for foreclosures and mortgage delinquencies shows significant improvement compared to data from five years ago, the universally accepted peak of the mortgage crisis, according to HOPE NOW, a private sector alliance of mortgage servicers, investors, mortgage insurers, and non-profit counselors.
HOPE NOW’s data for August 2015, released on Wednesday, shows foreclosure sales of 27,000 for the month, their lowest level since the organization began collecting data in 2007. August 2015’s total of foreclosure sales was approximately one quarter of the total reported for August 2010, which was 100,000.
Also in August 2015, there were 56,000 foreclosure starts, a 77 percent decline from August 2010’s total of 241,000. Mortgages 60 days or more delinquent totaled 1.69 million for August 2015, a 47 percent dropoff from the same month five years earlier (3.16 million).
“The best news from our data is that the overall health of the housing market has seen significant improvement from five years ago,” said Eric Selk, Executive Director of HOPE NOW. “Foreclosure and delinquency metrics are seeing a decrease of double digits. This points to a recovery of the market as mortgage delinquency is returning to normal levels.”
Non-foreclosure solutions, which include a combination of loan modifications, deeds-in-lieu of foreclosure, short sales, or other workout plans, totaled 118,000 in August 2015, which was more than four times the number of foreclosure sales (27,000) completed during the month. Approximately 33,000 of those non-foreclosure solutions were permanent loan modifications, which include both proprietary programs and the government’s Home Affordable Modification Program (HAMP). Approximately 23,000 of the loan mods were completed through proprietary programs and about 9,500 were completed through HAMP.
“Foreclosure and delinquency metrics are seeing a decrease of double digits. This points to a recovery of the market as mortgage delinquency is returning to normal levels.” —Eric Selk
“Total industry solutions continue to track favorably with foreclosure sales, which indicate progress in the recovery of the overall housing market,” Selk said. “Although there is good news, on a nationwide level, with respect to foreclosures and serious mortgage delinquencies, HOPE NOW’s members remained focused on specific markets that need additional support. These markets have been slower to recover and face a variety of housing issues. Also, we are starting to see the results of more ‘upstream’ solutions being brought to the market. If struggling families are being offered solutions quicker, the recovery rate will naturally happen quicker. Our members are not only focused on offering viable solutions for at-risk borrowers, but fulfilling quicker results at the time of delinquency.”