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An Eye on Foreclosure Prevention

Fannie Mae and Freddie Mac completed a total of 24,121 foreclosure prevention actions in August 2018, according to the latest Federal Housing Finance Agency’s report (FHFA) released on Tuesday. This brings their total number of prevention actions to 4,227,732. In addition, the serious delinquency rate fell from 0.84 percent at the end of July to 0.79 percent at the end of August.

Report Breakdown

FHFA’s current report further discusses the main reasons contributing to delinquency including curtailment of income at 32 percent, excessive obligations at 17 percent, unemployment at 8 percent, illness of principal mortgage or family member at 5 percent, and marital difficulties at 4 percent.

In enterprises foreclosures, third party and foreclosure sales reflected an increase from 4,116 in July to 4,643 in August. Foreclosures starts, on the other hand, recorded a decline from 11,639 in July to 11,499 in August.

According to the report, there were 752 short sales and deeds-in-lieu of foreclosure completed in August, which is a decline of three percent from the previous month.

The report reveals over half of the prevention actions dealt with permanent loan modifications, out of which 19,345 were completed in August, with a total of 2,276,9989 since the GSEs first came under conservatorship. Twenty-four percent of modifications were ones with principal forbearance. The report also points out modifications with extend-term comprised only 53 percent of loan modifications in the month.

State-by-State Glance

Florida leads the nation in the total number of delinquent loans followed by Texas, California, New York and Illinois.

The report finds that New York continues to have the highest number of deeply delinquent loans followed by Florida and New Jersey, Illinois, and Pennsylvania.

About Author: Donna Joseph

Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at [email protected].

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