Approximately 1,035,000 homeowners have received loan workouts and have been able to stay in their homes since July 2007, according to the most recent study by HOPE NOW.
Eighteen HOPE NOW servicers, covering almost two-thirds of the mortgage industry for both prime and subprime loans, provided the data. The study found that loan modifications made up nearly 50 percent of subprime loan workouts in January compared to 35 percent in the fourth quarter and 19 percent in the third quarter. The study also found that loan modifications increased 16 percent in January compared to December and since July 2007, 1,035,000 homeowners have received loan workouts. This includes 758,000 repayment plans initiated and 278,000 loan modifications.
“This study found that nearly three times as many homeowners have received a loan workout through loan modifications and repayment plans compared to the number of completed foreclosure sales,” said Faith Schwartz, executive director of HOPE NOW. “We are pleased with this progress and we will continue to focus vigorously on reaching homeowners at risk in order to avoid foreclosure.”