Mortgage modification rate dropped in 2011

Fewer borrowers received mortgage modifications in 2011 than the prior year, according to a recent report from Hope Now.

Fewer borrowers received mortgage modifications in 2011 than the prior year, according to a recent report from Hope Now.

The report found that while more than 1 million homeowners were granted modifications in 2011, it was 40 percent less than the number recorded the previous year. Mortgage records show in 2010, roughly 1.76 million borrowers received permanent loan modifications.  

"2011 was yet another challenging year for the nation's housing market and the economy in general," said Hope Now executive director Faith Schwartz. "However, great strides continue to be made on behalf of at-risk families across the country."

During 2011, fixed-rate mortgage modifications accounted for a majority of the activity, making up an 82 percent share.

However, despite less modifications in 2011, the rate still outpaced the number of foreclosure sales during the year with roughly 843,000 transactions.

Meanwhile, the report noted that since the housing bubble burst, more than 5 million homeowners have been given permanent modifications to lower monthly mortgage payments, making it easier for the households to remain in their homes.



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