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Fewer Loan Modifications Completed

Orange County Register - Jeff Collins

The nation’s mortgage lenders modified fewer mortgages to help keep delinquent borrowers in their homes this past summer, even though mortgage starts and sales increased, a new survey shows.

Lenders have been working to modify loans of borrowers who have fallen behind on payments by lowering monthly payments, lowering interest rates or in some cases by reducing the amount owed.

Hope Now, a coalition of loan servicers, investors and counselors, reported that loan mods fell nationwide to 55,828 in August.

That compares to monthly averages ranging from 84,000 to 115,000 loans modified a month in the previous nine months.

Loan Modifications (FC=foreclosure; del=delinquent)
Q4-2010 Q1-2011 Q2-2011 . Jun-11 Jul-11 Aug-11
Loan Mods 345,197 298,449 251,424 . 81,903 84,015 55,828
. . . . . . . .
FC starts 656,904 591,159 534,207 . 194,310 185,076 217,955
FC sales 180,818 222,691 216,073 . 72,570 64,578 67,663
60+ days del 3,019,282 2,858,461 2,785,156 . 2,752,961 2,810,511 2,797,573

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