HOPE NOW, the voluntary foreclosure prevention program put together by a private sector group of mortgage servicers, investors, mortgage insurers, and non-profit counselors, is continuing its outreach efforts with a special emphasis on reaching military families in 2012. HOPE NOW has held three outreach events, in Charlotte, North Carolina, Tampa, and Miami so far this year. Four military bases have been identified for special events during the first half of 2012 with the first one scheduled in San Diego on March 24.
In January HOPE NOW assisted borrowers in achieving 74,000 permanent loan modifications. Approximately 18,000 of these modifications were done through the Home Affordable Modification Program (HAMP) and 56,000 were proprietary modifications. The group has completed 5.3 million loan modifications since the alliance was formed early in the housing crisis.
There were 79,000 completed foreclosure sales during the month of January. This was the first time since October 2009 that there were more foreclosures completed through HOPE NOW than loan modifications. Delinquencies of 60 days or more continued to remain flat at about 2.77 million, or approximately 6% of all loans.
Of the modifications done in January, 38,000 or 67 percent resulted in modifications with reduced principal and interest payment and 50,000 or 89 percent of the modified loans carried a fixed interest rate for at least the initial loan period of five years.
Faith Schwartz, Executive Director of the program said, "HOPE NOW and its members have charged full speed into 2012 in the ongoing collaborative efforts to assist at-risk homeowners. Loan modifications continue at a steady pace and proprietary mods continue to show real signs of sustainability and affordability for homeowners. This is important to note, as these characteristics are vital to housing market recovery.
In addition to the San Diego event, HOPE NOW has scheduled face-to-face meetings with borrowers in Las Vegas on March 9 and 10, Sacramento on March 20, and Los Angeles on March 22.
