A foreclosure can have a devastating impact on a household's financial well being, so one nonprofit has taken it upon itself to complete as many mortgage modifications as possible.
An estimated 63,000 modifications were completed in May under the guidance of Hope Now. This organization is an alliance between counselors, mortgage companies and investors, and was founded to help homeowners find alternatives to foreclosure.
Since 2007, real estate professionals have found close to 6.43 million permanent solutions for borrowers. These include both modifications and short sales. Although a short sale may not be the ideal outcome, it can be far less damaging to a household's finances than repossession.
"We have been tracking short sales for almost two years and we now have meaningful data that shows the impact of short sales on the housing market," said Hope Now executive director Faith Schwartz.
Meanwhile, of the 63,000 modifications completed in May, nearly 45,000 were performed through proprietary loan programs, while 17,590 utilized the government's Home Affordable Modification Program. HAMP was established in 2008 and could help between 7 million and 8 million borrowers find closing solutions to change the terms of the home loans.