Loan Modifications Update

Loan Modifications.



In the third quarter of 2007, the mortgage industry modified an estimated 54,000 loans and established formal repayment plans with another 183,000 borrowers; by comparison, foreclosure actions began on approximately 384,000 loans, but of those foreclosures, 63 percent were cases where the borrower did not live in the home, the borrower did not respond to repeated attempts by the lender to contact them, or the borrower failed to perform on a repayment plan or loan modification that was already in place.



The report is based on responses from mortgage servicers covering approximately 33 million mortgage loans, or approximately 62 percent of the loans outstanding.

Hope Now Update.

On Wednesday, January 16, the HOPE NOW Alliance published a press release regarding the Homeownership Preservation Foundation's (HPF) HOPET Hotline call volumes. During the month of January the 888-995-HOPE Hotline has thus far received an average of 3,200 calls a day from at-risk homeowners reaching out for help and advice. The HOPE hotline, operated by the HPF, offers foreclosure prevention counseling by HUD-certified counseling agencies.