Foreclosure sales outpaced loan modifications in January for the first time since October 2009, when the government's Home Affordable Modification Program was just a few months old and still gaining altitude.
Foreclosure sales have jumped 22% since October to 78,700 units in January, according to a Hope Now servicer alliance report issued Monday.
Meanwhile, loan modifications have fallen 12% since November to 73,770 in January. Proprietary modifications have hovered around 55,500 per month while HAMP modifications fell to 18,000 in January, down from 26,900 in November.
Proprietary loan modifications "continue at a steady pace," Hope Now executive director Faith Schwartz said. And they "continue to show signs of sustainability and affordability for homeowners," she added.
The servicer alliance also reported that foreclosure starts climbed above the 200,000 mark in January for the first time since October.
