HOPE NOW: 249,000 Workouts in May

According to recently released statistics from the ""HOPE NOW Alliance"":http://www.hopenow.com, the mortgage lending industry helped 249,000 homeowners avoid foreclosure and keep their homes in May.
HOPE NOW said its members and the greater mortgage lending industry modified 101,000 mortgages in May and completed 148,000 repayment plans. The loan mods completed for the month represent a 16.5 percent drop from the 121,000 modifications made the month before, while repayment plans were up 5.7 percent compared to the 140,000 performed in April.
According to HOPE NOW, the drop in modifications and increase in repayment plans can be partially attributed to the industry’s implementation of the Obama administration’s mortgage relief programs. Under the federal guidelines the Home Affordable Modification program, loans are subject to a three-month trial period before a modification can be completed. Therefore, HOPE NOW said, a number of trials that will end up being modifications can right now only be reported as repayment plans. The organization said many of these workouts will result in formal reporting of modifications after they've proven successful for the initial 90 days.
Faith Schwartz, HOPE NOW's director, said, ""While workouts dipped slightly in May, it is fully expected those numbers will increase as the industry and the Obama administration implement the Making Home Affordable program and as mortgage servicers continue to ramp-up to meet growing consumer needs and address the complexities of the government’s home retention efforts. The industry remains committed to helping homeowners and working with all stakeholders whose goal it is to improving the housing market in challenging economic times.""
HOPE NOW's May data also revealed that 60 day-plus delinquencies increased from 2.9 million in April to nearly 3.0 million in May. Foreclosure activity was also up. Foreclosure starts increased from 243,000 in April to 257,000 in May, and completed foreclosure sales jumped from 63,000 to 83,000.
The Alliance reported that its consumer outreach initiatives have provided much-needed assistance to more than 13,000 struggling homeowners since January. HOPE NOW's upcoming schedule includes community outreach events in Las Vegas, July 24 and 25, and in Phoenix July 31 and August 1.
Schwartz said, ""The unique partnership between the banking industry, investors, non-profit groups, and the administration is productive and offers a great deal of hope and promise for a growing number of at risk borrowers in this economic and housing downturn. We are proud of the role we play in helping people stay in their homes.""