Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES
 

  Current Housing Indicators
CURRENTPREVIOUS
Existing Home Sales4.91m5.02m
New Home Sales460,000520,000
Housing Starts817,000872,000
Building Permits786,000857,000
HMI1417
Existing Home Prices$203,100▼ (annually)$224,400
New Home Prices$221,900▼ (annually)$236,500
 
Realty Check Video Gallery
Discussing whether the Treasury will force mortgage rates lower, with CNBC's Diana Olick.
Insight on the real estate market and mortgage rates, with CNBC's Diana Olick, Steve Liesman and Greg McBride, BankRate....
 
HOMEBUILDERS TOP 10 INDEX
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
See all Realty Check PostsRealty Check with Diana Olick
Text Size
Aug.27
4:01 PM ET
Wednesday, 27 Aug 2008
Foreclosure Prevention Picking Up Speed

Foreclosure
CNBC.com

New numbers are out today from the Hope Now Alliance. You may remember last fall, when Treasury Secretary Henry Paulson announced this new effort, bringing together mortgage servicers, counselors and investors to help borrowers in trouble.

Well, the Alliance reports that in July it did a record number of loan “workouts,” which can consist of either real modifications of the loans, like changing the interest rate or the principal, and repayment plans, which help borrowers to get current by putting off payments or tacking missed ones on the end of the loan.

There were more than twice as many repayment plans as loan modifications, which isn’t the best news because repayment plans can be temporary and don’t always keep the borrowers in the home forever. However, since the Alliance began almost a year ago, 686,000 loans have actually been modified, compared to 827 thousand foreclosure sales during the same period. So it’s definitely something.

The biggest beef we hear from loan counselors trying to help borrowers is that it is difficult to get in touch with lenders/servicers/banks, etc., and when you do, it’s often a lengthy and/or futile process to get a response.

But Faith Schwartz, the executive director of Hope Now, says that is quickly changing, thanks to a breakthrough with servicers in June.

“Servicers have agreed to a series of new guidelines out there that will help give statuses to borrowers, commitments to time lines, to housing counselors who in the past have not been able to get through to the servicer in an efficient manner,” says Schwartz.

“Setting expectations, setting up clarity around what servicers can do for borrowers has been a huge breakthrough. By August or September, I’d say we’re going to have a lot more uniformity in how borrowers are treated and work through tough issues,” she added.

Let’s hope so.

______________________________________
Housing & Economic Impact:

Stocks:

- Fannie Mae [FNM  Loading...      ()   ]

- Freddie Mac [FRE  Loading...      ()   ]

- Lehman Bros. [LEH  Loading...      ()   ]

CNBC Coverage:

- Fannie & Freddie Rebound As Bailout Worries Fade

- Mortgage Applications Rise for 1st Time in 3 Weeks

______________________________________

Questions?  Comments? 

© 2008 CNBC, Inc. All Rights Reserved

Permalink: /id/26426081

HOME  |  NEWS  |  MARKETS  |  EARNINGS  |  INVESTING  |  VIDEO  |  CNBC TV  |  CNBC PLUS  |  CNBC MOBILE  |  CNBC HD+
About CNBC   |   Site Map   |   Privacy Policy   |   Terms of Service   |   Advertise   |   Help   |   Feedback   |   Video Reprints
  Data is a real-time snapshot   *Data is delayed at least 15 minutes

Global Business and Financial News, Stock Quotes, and Market Data and Analysis