The number of completed loan modifications has fallen in April and May as servicers put more loans through a 90-day trial period as required by the Obama administration's Home Affordable Modification program. "Many of these trial modifications will result in formal reporting of modifications after 90 days," according to Hope Now, an alliance of mortgage servicers. Hope Now servicers reported that they modified 101,000 mortgages in May, down from 121,000 in April and 134,000 in March. Meanwhile, foreclosure sales jumped to 82,600 in May, up from 62,800 the previous month. Nearly two thirds of the foreclosure sales in May and April involved prime mortgages.
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