HOPE NOW facilitated mortgage modifications now total over 5.6 million since the program began in 2007 according to information released by the program on Tuesday.  HOPE NOW is a voluntary private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors formed as the magnitude of the housing crisis began to emerge.   

The program's June 2012 data shows that 385,468 homeowners were helped to get permanent loan modifications through the program during the first half of this year, a decline of 28 percent from the first half of 2011.  Modifications on proprietary loans totaled 275,324 and an additional 110,144 homeowners received modifications under the Home Affordable Modification Program (HAMP).

Of the proprietary modifications completed in the six month period 218,000 or approximately 79 percent reduced the principal and interest payments of the borrowers and for 72 percent those payments were reduced by more than 10 percent.  Ninety percent of modifications had a fixed the interest rate for at least the first five years. 

Servicers in the HOPE NOW coalition reported that foreclosure starts were down 15 percent during the first six months of the year, 1.06 million compared to 1.3 million a year earlier.  Completed foreclosures were 395,722, down 10 percent from 438,764 in the earlier period.   

The program reported an increase of 18 percent in the number of completed short sales during the first half of this year compared to the first half of last year.  There were 207,618 such sales completed this year compared to 176,174 in the same period in 2011.