Market Update: Rise in Mortgage Modifications in 2013

Several programs – both nationally and locally – have been created to help homeowners avoid foreclosure by obtaining a home loan modification. Finally, some of these programs are starting to see some very positive results as a result of their continued efforts.

For example, there have been 204,000 permanent mortgage modifications from April to June 2013 alone. The Home Affordable Modification Program (HAMP) – which was revised to help more homeowners – completed 44,860 of those modifications.

At the same time, the number of homes entering the foreclosure process has ebbed significantly. There were around 329,000 foreclosure starts in the second quarter of this year in comparison to 472,000 in the first quarter – a decline of over 30%. When looking at the numbers in comparison to the second quarter of 2012, foreclosure starts have declined 38%.

In conclusion, the number of mortgage modifications has increased, providing many homeowners with an alternative to foreclosure. Between the national and local programs, something is definitely working and many people are finding the help they need. However, it will take more time to see which programs truly are the most effective and which may simply be delaying the inevitable.