Foreclosure Sales Decline Second Straight Month

Foreclosure sales nationwide decreased 7 percent from 73,000 in April to 68,000 in the month of May, according to HOPE NOW’s data.

Foreclosure starts increased 8 percent from 163,000 in April to 176,000 in May.

Permanent loan modifications decreased only slightly from April to May, falling from 86,000 to 85,000.

Proprietary modifications totaled 53,000, a 7 percent decrease from April.

Seventy-eight percent of proprietary modifications included reduced principal interest payments; 57 percent had reduced principal interest payments of more than 10 percent; and 88 percent were fixed-rate modifications.

Modifications completed under the Home Affordable Modification Program (HAMP) totaled 32,398 in May, a 12 percent increase from April.

HOPE NOW also reported that 60+ day delinquencies increased only slightly at a rate of one percent, totaling 2.67 million for the month of May.

“Despite increases in foreclosure starts and a decrease in proprietary modifications this month, there were still a few bright spots in fewer foreclosure sales, an increase in HAMP loan modifications and the third straight month of relatively flat 60+ day delinquencies,” said Faith Schwartz, Executive Director of HOPE NOW.

HOPE NOW is an industry-created alliance of mortgage servicers, investors, counselors, and other professionals.

“Since 2007, mortgage servicers have completed 4.6 million permanent loan modifications for the nation’s homeowners and there has been no slow down in the efforts to keep as many families as possible in their homes,” said Schwartz.