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Hope Now, the alliance of banks, mortgage servicers and non-profit mortgage counselors, came out with its July data this week and the numbers still look bleak.
While the actual number of foreclsoures in the month declined 3% to 89,100, the number of borrowers 60 days or more past due on their loans rose 6% to 3.1 million. The number of folks entering the foreclosure process increased 12% to 283,000.
The group says the number of loans it modified decreased from 93,921 in June to 80,167 in July. The number of borrowers negoatiationing repayment plans also declined to 173,506 in July from 211,882 in June. The group blames the downward trend over the last few months on morgage servicers retooling and refocusing to keep up with the Obama Administration’s latest mortgage modification programs.
One bit of good news: as the chart above shows, the percentage of homeowners in trouble who are actually losing their homes is decreasing from about 48% at the start of the crisis to 38% today.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.