Loan mods could top 1.5 million this year

Pace of foreclosure starts hits 3.5 million in March

Loan servicers are on track to do nearly 3 million workouts this year, but foreclosure starts rose to an annual rate of 3.5 million a year in March, according to the latest numbers from the HOPE NOW coalition of loan servicers.

HOPE NOW said its members modified 391,155 loans during the first three months of the year, a 21 percent increase from the previous quarter and more than double the number of loan modifications achieved in the same period of 2008.