Skip to Content

The FHFA released new findings in its Foreclosure Prevention and Refinance Report

The Federal Housing Finance Agency (FHFA) released its report, the Foreclosure Prevention and Refinance Report, today.

The report compares data from 2008 to the most current data gathered up to August 2010. Charts and graphs included in the report show delinquency rates, foreclosure actions, loan modification statistics and more.

For instance, short sales have increased by 21 percent since the year-end amount of 15,704 in 2008. Thus far into 2010, there were a total of 73,422 short sales.

Of all the foreclosure and foreclosure forfeiture action taking place, 88 percent were foreclosure prevention actions, which include: repayment plans, forbearance plans, loan modifications, charge-offs in lieu and home saver advance for Fannie Mae customers.

The other 12 percent consisted of foreclosure forfeiture action, which entails short sales and deeds-in-lieu.

To view the full report, visit here.

 

Definitions provided by the Report:

Deed(s)-in-lieu of Foreclosure - A loan for which the borrower voluntarily conveys the property to the lender to avoid a foreclosure proceeding. 

Repayment Plans - An agreement between the servicer and a borrower that gives the borrower a defined period of time to reinstate the mortgage by paying normal regular payments plus an additional agreed upon amount in repayment of the delinquency.

Forbearance Plans - An agreement between the servicer and the borrower (or estate) to reduce or suspend monthly payments for a defined period of time after which borrower resumes regular monthly payments and pays additional money toward the delinquency to bring the account current or works with the servicer to identify a permanent solution, such as loan modification or short sale, to address the deliquency. 

Charge-offs in Lieu of Foreclosure - A delinquent loan for which collection efforts or legal actions against the borrower are agreed to be not in the Enterprises' best interests (because of reduced property value, a low outstanding mortgage balance, or presence of certain environmental hazards). The servicer charges off the mortgage debt rather than completing foreclosure and taking the property title. The borrower retains the property. The unpaid mortgage balance becomes a lien on the borrower’s property, which must be satisfied when the borrower transfers ownership.

HomeSaver Advance (Fannie Mae) - An unsecured personal loan to a qualified borrower to cure his or her payment defaults under a mortgage loan the Enterprises own or guarantee. The borrower must be able to resume regular monthly payments on his or her mortgage.

Loan Modifications - Number of modified, renegotiated, or restructured loans, regardless of performance-to-date under the plan during the month. Terms of the contract between the borrower and the lender are altered with the aim of curing the delinquency (30 days or more past due).

Nonforeclosure-Home Forfeiture Actions- Short sales and deeds-in-lieu of foreclosure. These actions require borrowers to give up their homes. Although homes are forfeited, foreclosure alternatives generally have less adverse impact on borrowers and their credit reports than foreclosure.

Short Sales - A short sale (also called a preforeclosure sale) is the sale of a mortgaged property at a price that nets less than the total amount due on the mortgage (e.g., the sum of the unpaid principal balance, accrued interest, advanced escrows, late fees, and delinquency charges.) The servicer and borrower negotiate payment of the difference between the net sales price and the total amount due on the mortgage.

  

Get E-mail Updates from RealEstateNewsUtah.com

Receive FREE periodic updates from RealEstateNewsUtah.com. Subscribe here to be added to our mailing list.