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).

Despite the dramatic decline in loan modifications, they still exceeded foreclosure sales by more than 126,000 in the first half of 2011.

Foreclosure starts were down 9 percent during the first half of 2011 from a year ago, to 1.14 million, while foreclosure sales were down 25 percent, to 431,801.

The number of mortgages with payments late by 60 days or more declined by 27 percent, to 2.73 million.

Since 2007, 3.7 million homes have been sold through foreclosure, while homeowners have received 4.7 million permanent loan modifications.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Thank you for subscribing to Morning Headlines.
Back to top
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription