Of all non-GSE mortgages eligible for principal reductions through the government’s Home Affordable Modification Programs, 70% actually included a principal reduction component during the month of February, the Obama administration said Friday.
The Treasury made this assertion in its latest Housing Scorecard, which tallied the results of the government’s various loan modification and homeowner-aid programs over the course of the past four years.
More than 1.5 million home rescue actions have been launched through the Fed’s Making Home Affordable Program since its launch back in 2009. While significant, this number is virtually unchanged from the last update on HAMP.
Furthermore, the official tally of homeowners who have received a permanent loan modification since 2009 still hovers right above 1.1 million.
Homeowners who have received a modification on first-lien mortgages through the Home Affordable Programs have managed to reduce their median monthly payments by as much as $546, the Treasury said. Altogether, the program has saved borrowers an estimated $18.5 billion in mortgage payments.
Short sales and deed-in-lieu of foreclosure actions also helped more than 126,000 homeowners escape overwhelming mortgage debt through the Home Affordable Foreclosure Alternatives Program, and over 107,000 second-lien modifications have gone through the Second Lien Modification Program since its inception.
Homeowners with a permanent second-lien modification saved roughly $155 per month, while homeowners who saw their second liens extinguished ended up seeing their total monthly payments (including first liens) drop as much as 53%.
