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5.1 Million in Default

January 17, 2011

Sacramento Bee reports today:

Loan servicers say they’ve worked hard to help their customers. Hope Now – an alliance of mortgage companies, investors and counselors – touts the fact that in 2010, loan modifications outpaced foreclosures.

Nearly 1.65 million loans were permanently modified nationwide from January through November 2010, compared with nearly 1 million foreclosure sales, according to Hope Now data released earlier this month.

But the scope of the problem remains enormous. About 5.1 million homeowners nationwide were behind at least 60 days on their mortgage payments as of Oct. 31, according to the U.S. Treasury Department.

New figures RealtyTrac released last week show 2010 was a record year for foreclosure activity, and the Irvine-based researcher projects 2011 will be even worse.

Loan modifications “still take a long time. They’re still not happening at the level they probably should,” said Pam Canada, chief executive officer of NeighborWorks Sacramento, a nonprofit group that counsels homeowners facing foreclosure.

The federal government’s main effort to address the situation, the Home Affordable Modification Program, or HAMP, has fallen short of its goal to help 3 million to 4 million homeowners by 2012, lowering their monthly housing payments to 31 percent of their gross monthly income.

Entire article, click here

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