Fannie Mae, Freddie Mac prevent 117088 foreclosures in 2nd quarter

Image: Home Foreclosure © Dana Hoff, Getty ImagesBy Marcie Geffner,


Fannie Mae and Freddie Mac completed approximately 117,000 foreclosure-preventi​<!–on actions in the second quarter of 2013, according to the Federal Housing Finance Agency (FHFA), which released its quarterly Foreclosure Prevention Report on Monday.


The 117,088 actions were composed of 59,635 loan modifications, 23,648 repayment plans, 4,221 forbearance plans, 171 charge-offs in lieu of foreclosure, 24,656 short sales and 4,757 deeds-in-lieu of foreclosure.



Post continues below

The modifications, repayment and forbearance plans and charge-offs helped 75 percent of the struggling homeowners manage their mortgage payments and retain their home. The short sales and deeds-in-lieu enabled 25 percent of the borrowers to avoid foreclosure, though they had to forfeit their ownership of their home.


  • One-third of the permanent loan modifications in the quarter included principal forbearance.
  • More than half of the homeowners who received a permanent loan modification in the quarter had their monthly payment reduced by more than 30 percent.
  • The number of Fannie Mae and Freddie Mac delinquent loans dropped nationally during the quarter. The decline was primarily because of a drop in seriously delinquent loans.
  • Borrowers who were more than 60s days delinquent on a Fannie Mae or Freddie Mac loan dropped 7 percent during the quarter to the lowest level since the start of conservatorship.
  • As of June 30, about 11 percent of the borrowers whose loan was modified in the third quarter of 2012 had missed two or more payments.

Fannie Mae and Freddie Mac completed 247,000 foreclosure-preventi​<!–on actions in the first half of this year and have completed more than 2.9 million such actions since they were put into federal government conservatorship in 2008. These actions have helped approximately 2.4 million mortgage borrowers stay in their homes, FHFA said.

Fannie and Freddie have completed nearly 506,000 short sales and deeds-in-lieu of foreclosure since the start of the conservatorship, FHFA said.

The report also contains some statistics that are specific to the government-sponsored​<!– Home Affordable Modification Program.

From April 2009, when HAMP debuted, through the end of the second quarter, slightly more than 1 million borrowers began HAMP trial loan modifications. Slightly more than 592,000, or 57 percent, of those trials were made permanent, approximately 345,000 were canceled and nearly 80,000 were disqualified.


Of the 592,000 completed permanent HAMP loan modifications, approximately 432,000, or 73 percent, were still active at the end of the 2013 second quarter. Approximately 147,000 had subsequently defaulted and 12,819 had been paid off.


More from

Comments are closed.