Loan modification activity fell again on a monthly basis, but there are still several states where borrowers need assistance, according to the Hope Now alliance.
Hope Now reported Thursday that total nonforeclosure solutions, including loan modifications, short sales, deeds-in-lieu and workout plans, in May added up to 112,000. Conversely, there were only 25,000 foreclosure sales for the month, down 12% from June.
Foreclosure starts dropped 5% month-over-month to 51,000.
There were roughly 35,000 permanent loan modifications during the month, down 17% month-over-month but up 3% year-over-year. Of these modifications, 23,000 were made via proprietary programs, while more than 12,000 were completed through the Home Affordable Mortgage Program.
Short sales fell 10% from June to 5,700, while deeds-in-lieu similarly decreased 16% to 1,400.
"Our latest data report indicates that while delinquency continues to decline to pre-crises norms, there still remains a population of homeowners who need assistance. While the data trends certainly suggest that the market is recovering, there remains areas where assistance is still needed. Hope Now continues to focus our efforts in several of these regions including Florida, Georgia, New Jersey and California," said
