REO Sales Rise in April While Foreclosure Sales Level Off
Loan modification activity slowed in April to 70,000, down from 84,400 in March, according to a new report by the Hope Now servicer alliance.
Loan mods under the Home Affordable Modification Program totaled 11,970 in April, relatively unchanged from the prior month.
Hope Now reported that 76% of 57,900 proprietary mods completed in April reduced the borrowers’ monthly mortgage payments by more than 10%.
On HAMP mods, the servicers are required to reduce the borrowers’ monthly payments by 20%.
Meanwhile, foreclosure sales rose over the past three months ending in April, while foreclosure starts have slowed considerably.
Servicers completed 58,800 foreclosure sales in April, up from 51,550 in March and 48,500 in February.
After a spike in February when servicers initiated 191,600 foreclosure actions, foreclosure starts leveled off to 115,600 in March and 114,770 in April.
Hope Now servicers also completed 27,000 short sales in April, compared to 26,000 in the prior month.
Member servicers have completed 1.26 million short sales since mid-2009, according to Hope Now executive director Eric Selk.
“Hope Now is proud of the efforts its members have made on behalf of the nation’s homeowners. While there is still work to be done in the housing market, significant progress has been made via loan modifications, short sales and other solutions,” Selk said.