Loan workouts hit record high in April

by Oliver 2. June 2008 21:50
A mortgage industry alliance, which aims to help troubled borrowers at-risk of losing their homes, reported that they had help 183,000 families in April. The alliance is composed of mortgage lenders, servicers, investors and community advocacy groups,

This was the highest monthly figure recorded since the effort started in July last year but still many are still losing their homes. There are 23,000 more workouts completed thatn March.

Included in the report was that group also said it has arranged a total of nearly 1.6 million loan workouts since the program began in July, 2007.

"These numbers clearly demonstrate that Hope Now is succeeding at helping homeowners avoid foreclosure and stay in their homes," said the organization's executive director, Faith Schwartz.

However, a total of 80,926 families lost their homes to foreclosure in April, according to Hope Now, up 12% from 72,024 in March. That puts the country on pace to see more than a million families lose their homes this year.

Also, online marketer of foreclosed homes, RealtyTrac, recently reported that 243,353 households received a foreclosure filing in April, up 65% from that month last year.

Consumer advocates say permanent home loan modifications, in which a mortgage company agrees to reduce the interest rate or make other changes, are the best way to help borrowers. The mortgage industry’s statistics include repayment plans, which allow borrowers to get back on track after missing payments.

"Foreclosure benefits no one: the borrower, community, lender and investor all lose," Schwarts said
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