Approximately 1,035,000 homeowners received mortgage loan workouts between July 1, 2007 and January 31, 2008, including 758,000 repayment plans and 278,000 loan modifications, according to a HOPE NOW study. Approximately 60% of these workouts involved subprime loans. The study shows that subprime modifications increased to nearly 50% of all workouts in January, up from 35% of total workouts in the fourth quarter of 2007 and 19% in the third quarter. HOPE NOW is a voluntary alliance of mortgage loan counselors, mortgage lenders and servicers, and other mortgage market participants that has developed a mortgage loan workout initiative. Click here for a copy of the study.
Alert March 11, 2008