National bank and thrift servicers implemented more than 680,000 home loan modifications and payment plans in the third quarter of 2009, a 69 percent increase compared with the second quarter, according to a report released by the Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS).

The percentage of current and performing mortgages declined for the sixth consecutive quarter to 87 percent of the servicing portfolio, serious delinquencies rose to 6.2 percent, and foreclosures in process surpassed 1 million mortgages, according to the report.  Serious delinquencies at the end of the third quarter increased to 3.6 percent of prime mortgages, an increase of 20 percent from the previous quarter and more than double a year ago.

Other findings from the report included:

• More than half of all modified loans re-defaulted within six months of modification, with re-default defined as 60 or more days delinquent or in foreclosure.
• Servicers implemented nearly 274,000 trial plans under the administration’s “Home Affordable Modification Program” (HAMP) during the third quarter. 
• Servicers implemented nearly twice as many home retention actions as new foreclosures.
• More than 80 percent of the loan modifications in the third quarter reduced monthly principal and interest payments.

In a breath of fresh air for troubled home owners (small breath) over the holidays, Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac will suspend foreclosure evictions from Dec. 19, 2009 through Jan. 3, 2010.  

Fannie Mae is suspending all foreclosure evictions on owner-occupants and tenants living in foreclosed properties the company holds.  Freddie Mac also will suspend all evictions involving foreclosed, occupied, single family, and 2-4 unit properties with Freddie Mac-owned mortgages.

In a similar move, Citigroup Inc. also announced it will suspend foreclosure sales and evictions for 30 days through Jan. 17, 2010 for loans it owns.  Citigroup’s foreclosure moratorium; however, does not extend to loans it services on behalf of other investors. 
Given these developments, other lenders may follow suit.  REALTORS® and consumers should check with individual lenders to verify participation in the holiday moratorium.

This site will be dedicated to helping owners avoid foreclosure by keeping their homes if possible, and selling them if not.  Check back for regular updates.