Foreclosure starts rebounded in May and June after falling sharply in April, but loan modifications continued to outpace foreclosure sales during the second quarter, according to the latest report from loan servicers participating in the "Hope Now" program.
The latest Hope Now report showed foreclosure starts — which fell 25 percent from March to April, to just over 160,000 — rebounding to 181,866 in May and 195,721 in June. Foreclosure sales remained nearly constant at around 70,000 per month, while loan servicers modified loans at the rate of about 80,000 per month.
In the first six months of the year, loan servicers completed an estimated 558,125 loan modifications, down 42 percent from the same period a year ago. Most loan modifications completed in the first half of 2011 — 374,704 — were granted outside the Home Affordable Modification Program (HAMP).