Obama Administration's July 2012 Housing Scorecard - Homeowners helped with Home Loan Modifications

High Rise Homes- BSN

(Best Syndication News) - The US Department of Housing and Urban Development (HUD), along with the US Department of the Treasury, released the July 2012 edition of the Obama Administration’s Housing Scorecard. The July Housing Scorecard found hints of recovery with foreclosure rates declining in June. The existing home inventories on the market were at low levels again.

The turnaround time to sell the existing houses for sale was reported to be at 6.6 months and new homes on the market was at 4.9 months. The report explained that market experts suggest that a six-month supply of homes is a sign of a balanced market.

HUD Acting Assistant Secretary Erika Poethig explained that the July report demonstrated that the market has momentum that has not been seen since before the housing crisis. In May, twenty percent of the refinancing was with the Home Affordable Refinance Program (HARP). Poethig said that they are asking Congress to vote in favor of the President’s refinancing proposal to continue to help homeowners.

Over 1.2 million homeowners have participated in the Making Home Affordable Program since it started in 2009. The FHA program has helped over 1.4 million homeowners with loss mitigation and early delinquency interventions. There have been over 2.9 million proprietary mortgage modifications through May for the HOPE Now program.

Of the HAMP home loan modifications that have been completed, these homeowners saved an average of $536 on their monthly mortgage payment. Altogether, the homeowners have saved an estimated $13.3 billion to date. Permanent mortgage modifications were achieved by 86 percent of the homeowners who participated in the program over the last 23 months. The trial modification period averaged 3.5 months. Additionally, over 88,000 homeowners had the principal on their mortgage loan reduced. Almost 87,000 participants completed the Second Lien Modification Program (2MP).

The July Housing Scorecard is forecasting higher home prices than they did back in January 2009. They are anticipating housing prices to continue to increase over the coming months. However, the number of homes held off the market remained at very high levels, which could be why there were a low number of houses on the market.

Mortgage rates remain at historic record lows. The 30-year fixed mortgage rate is averaging below 4 percent. Freddie Mac (OTC: FMCC) announced this week that the average 30-year fixed rate mortgage was 3.59 percent with an average 0.6 points.

By: Dave Reddy

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