The private sector coalition of nonprofit counselors, investors, mortgage servicers and insurers, released a report showing that the foreclosure prevention activity nationwide improved by almost 20 percent in July 2009 compared with the same month in 2007.
HOPE NOW said that about 1.77 million properties were saved from foreclosure house listings in the first seven months of this year. The organization said that the improvement indicated that many homeowners were able to work out solutions that allowed them to avoid foreclosures.
Additionally, the organization said that the improvement in the foreclosure prevention activity indicated a trend towards a reduction in the number of foreclosure starts and sales, adding that workout solutions are starting to pick up pace.
On its press statement, the organization said that members of HOPE NOW and the mortgage industry are providing help to more distressed borrowers to avoid foreclosures. The organization admitted that there is still more work to be done but that its members and partners are responding to the increasing challenge.
According to market data, the number of foreclosure starts rose to 283,682 in July from 251,340 in June. But the number of actual foreclosures dropped to 89,173 from 92,661.
Meanwhile, despite efforts of the mortgage industry to paint a rosy picture for the housing market, some factors are trying to dampen the progress made towards recovery. In July, the number of homeowners who were delinquent on their monthly mortgage payments increased, indicating that foreclosure prevention efforts should be improved in the foreseeable future to help prevent the rising foreclosure rates.
Homeowners who were more than 2 months behind on their mortgage payments rose by 5.9 percent. The increase indicated that about 3.1 million homeowners are now delinquent on their loan payments and are on the brink of foreclosure.
On a positive note, HOPE NOW executive director Faith Schwartz said that in July, more than 253,000 troubled homeowners were able to avoid foreclosures through loan modifications, while sales of foreclosure homes rose.
She said that the positive developments are indications of the mortgage industry’s commitment to help distressed people find solutions to remain in their homes.
HOPE NOW has intensified its efforts to reach distressed homeowners with forums that will give them a chance to meet face to face with mortgage servicers.
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