Delinquent mortgage loans fell nationally in the second quarter ended June 30, with the number of seriously delinquent borrowers following 7% at the GSEs - the lowest mark reported since Fannie Mae and Freddie Mac entered conservatorship.
An estimated 117,000 homes were saved in the second quarter through some type of modification, the Federal Housing Finance Agency reported in its 2013 Foreclosure Prevention Report. Foreclosure prevention actions enacted by Fannie Mae and Freddie Mac have prevented 2.9 million foreclosures since 2008, with 247,000 home rescues completed in the first half of the year.
More than half of troubled borrowers receiving permanent loan modifications in the second quarter saw their monthly payments reduced by more than 30%. An estimated 33% of permanent loan modifications in the quarter included some type of principal forbearance, while another 29,000 or so involved short sales and deeds-in-lieu, according to HousingWire.com.
Third-party sales and foreclosure sales also continued to fall, dropping 10% in the quarter while foreclosure starts fell 11%, the FHFA noted. Foreclosure starts also fell 4.7% from the prior month, hitting 107,552 starts, down 46.5% from a year earlier.