Loan modifications still the way to go

The recently released national Housing Scorecard for June 2012 pointed to both signs of promise, as well as reasons for concern when considering a loan modification.

Positive indicators:

Home equity rose by 7.4% in the first quarter of 2012; sales for existing homes posted a 9.6% increase in May in a year over year comparison; completed foreclosures were down 18% year over year. The May scorecard provides an overview of the health of the housing market.

Negative indicators:

After months of declines, foreclosure stats increased by 12% month over month in May; completed foreclosures increased by 7% month over month. These numbers indicate the market is still fragile overall.

 June National 2012_Scorecard_(cm)1.1.indd

June National 2012_Scorecard_(cm)1.1.indd

In addition to the foreclosure statistics, the administration also released an update on the Making Home Affordable program, under which nearly 1.2 million homeowners have received assistance. The average savings was $536 a month on their first mortgage and $159 a month on second mortgages.

Also, nearly 51,000 avoided foreclosure by way of a short sale or deed-in-lieu through the HAFA program.

 June National 2012_Scorecard_(cm)1.1.indd

June National 2012_Scorecard_(cm)1.1.indd