The number of homeowners who received permanent loan modifications from mortgage servicers decreased in the third quarter compared to the second, according to data from Hope Now.
Approximately 181,000 borrowers at-risk of foreclosure obtained some sort of adjustment to their mortgage payments from July through September, which is a 22%
Of the 181,000 completed loan modifications, about 136,000 were proprietary modifications and more than 45,000 homeowners received a
For September, an estimated 53,000 loan modifications were completed, representing a 21% decrease month-over-month. The mortgage industry since 2007 has accomplished more than 6.7 million permanent loan modifications for homeowners, Hope Now says.
Proprietary loan modifications that included fixed interest rates of five years or more accounted for 93% (37,000) of the September total. Also, non-HAMP loan modifications with reduced principal and interest monthly payments made up 76%, or 30,000, of this monthly total. Furthermore, 28,000 homeowners had their principal and interest payments lessened by at least 10%.
Meanwhile, there was 17% fewer short sales finalized in the third quarter than the second quarter, the Washington-based private sector alliance of mortgage servicers, investors, mortgage insurers and nonprofit counselors says. Nearly 67,000 short sales happened in 3Q13, while 81,000 occurred during the prior three-month quarter.
A year ago, 109,000 short sales were completed. This is a decline of 39%.
Since December 2009, there have been a total of more than 1.3 million short sales.
