Loan Modification Activity Slows in 2Q

Foreclosure starts fell noticeably in the second quarter from the previous quarter and the number of loan modifications fell to their lowest level since last summer, according to a new Hope Now report.

Foreclosure starts in the second quarter totaled 329,000ódown 30% from the first quarter and down 38% from 2Q 2012.

Foreclosure sales totaled 158,000 in the second quarteródown 2% from the first quarter and 15% from 2Q 2012.

Short sales also took a tumble compared to last year. Short sales fell to 81,000 in the second quarter, down 25% from 2Q 2012. Short sales were also down 3% from the first quarter.

Meanwhile, Hope Now servicers completed 61,400 loan modifications in the June, the lowest since 61,500 in May 2012.

The second quarter seems to be the slowest period in terms of loan modifications. Servicers completed 204,435 loan modifications in 2Q, down nearly 17% from 1Q.