Foreclosure Prevention Report - Third Quarter 2012

Published: 01/03/2013

Third Quarter 2012 Highlights

The Enterprises completed approximately 134,200 foreclosure prevention actions in the third quarter, bringing the total to more than 2.5 million since the start of conservatorship in September 2008. Over 2.1 million of these actions have helped borrowers to stay in their homes including nearly 1.3 million permanent loan modifications.
Approximately 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.
Fewer than 15 percent of loans modified in the fourth quarter of 2011 had missed two or more payments, nine months after modification.
Nearly 38,000 short sales and deeds-in-lieu were completed in the third quarter, up 4 percent compared with the second quarter.

The percentage of loans that have missed one or two monthly payments increased, while serious delinquency rates continued to decline during the quarter.
A substantial number of the Enterprises’ delinquent borrowers have missed more than one year of mortgage payments. Approximately 29 percent of these borrowers are located in Florida.

Foreclosure starts rose while foreclosure sales decreased in the third quarter.
REO inventory continued to decline as property dispositions outpaced property acquisitions in the third quarter.