163,000 Homeowners Received Foreclosure Assistance in August: Hope Now

Home retention strategies outpaced foreclosure sales in August by a five-to-one ratio, according to the Hope Now alliance.

The combination of total loan modifications, short sales, deeds in lieu and workout plans were approximately 163,000 in August. Meanwhile, foreclosure sales declined in August from the previous month by 11%, to 34,000, said the Washington-based alliance of mortgage servicers, investors, mortgage insurers and nonprofit counselors.

An estimated 40,000 homeowners received permanent loan modifications from mortgage servicers during the month. From this total, nearly 30,000 modifications were done through proprietary programs while less than 10,000 were completed via the Home Affordable Modification Program.

Hope Now reported that about 9,300 short sales were finalized in August, a 16% decrease from the month before. Additionally, there were 2,400 deeds in lieu tallied during August, which is down 7% month-over-month.

Delinquencies of 60 days or more were down roughly 2% from the previous month, to approximately 1.9 million, which is the sixth consecutive month that serious delinquencies were under two million. Hope Now extrapolated its delinquency data from the Mortgage Bankers Association.

Meanwhile, foreclosure starts also declined in August with 65,000 compared to 70,000 in July.

"Efforts to offer homeowners the most sustainable mortgage solutions continue to be a top priority for Hope Now's industry members," Eric Selk, executive director of the private sector alliance, said in a press release. "Those at risk of foreclosure now have more options than ever before for home retention or graceful exit."

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