Loan modifications have been a popular way to avoid foreclosure since the housing crisis. According to Hope Now, there have been 604,301 modifications completed in the first nine months of 2012.
In the third quarter, a total of 219,333 modifications were completed, 186,057 being proprietary and 33,276 through the Home Affordable Modification Program. Since 2007, approximately 5.82 million mods have been completed. The amount of proprietary loan mods in the third quarter was up 15 percent compared to the same period in 2011.
Many borrowers have also turned to short sales to avoid foreclosure. A total of 110,153 short sales were completed in the third quarter, bringing the total since December 2009 to 1,047,899.
"The combination of loan modifications and short sales completed by mortgage servicers, in the third quarter of the year, totals over 329,000," said Faith Schwartz, executive director of Hope Now. "That compares to approximately 198,000 foreclosure sales during the same period."
In addition to modifications, borrowers have been able to take advantages of refinancing through private lenders and the Home Affordable Refinance Program to avoid foreclosure.
