Mortgage services on behalf of government-subsidized Fannie Mae and Freddie Mac completed more than 134,000 foreclosure prevention actions in the third quarter of 2012, including a record of nearly 38,000 short sales and deeds-in-lieu.
That brings the total foreclosure prevention actions to more than 2.5 million since the U.S. government’s takeover of the Fannie and Freddie in 2008, according to the entities’ independent regulator, the Federal Housing Finance Agency.
Meanwhile, the mortgage-financing companies inventories of REOs (real estate owned) continued to decrease.
Through the third quarter, Fannie and Freddie acquired 197,507 homes through foreclosure, and sold 218,321 REOs and foreclosed homes.
Fannie and Freddie had 158,138 homes in their REO inventories as of Sept. 30, 2012. That’s down 13 percent from a year ago, and nearly 36 percent from a Sept. 30, 2010 high of 241,684.
Here are the highlights:
- Year-to-date, Fannie Mae and Freddie Mac have completed nearly 411,000 foreclosure prevention actions.
- Nearly 38,000 short sales and deeds-in-lieu were completed in the third quarter, up 4 percent compared with the second quarter.
- 45 percent of troubled borrowers who received loan modifications in the third quarter had their monthly payments reduced by more than 30 percent.
- More than one-third of loan modifications completed in the third quarter included principal forbearance.
- The number of the Enterprises’ delinquent borrowers has declined 9 percent since the beginning of 2012.
- REO inventory continued to decline as property dispositions outpaced property acquisitions during the third quarter.