HOPE NOW, the private sector alliance of mortgage servicers, counselors, and investors that is working to help prevent foreclosures in the midst of the current mortgage crisis, may have lost the spotlight to the huge mortgage relief bill Congress passed. However, the organization is still soldiering on.

HOPE NOW reports that in June 2008, mortgage servicers completed more than 181,000 mortgage workouts for home loans that otherwise would have gone into foreclosure. In the second quarter of 2008, mortgage servicers completed more than 522,000 workouts. Both of these numbers exceeded previous estimates and are the largest number of mortgage workouts in any month and quarter since HOPE NOW began compiling data in July 2007.

Workouts include both modifications to the terms of existing mortgages and repayment plans. Subprime modifications exceeded 50 percent of all subprime workouts for the first time in both June and the second quarter of 2008.

All workouts are intended to be permanent changes that, barring a life-changing event such as a job loss, death, or illness, will allow a homeowner to stay in the home as long as he or she wishes to do so.

The HOPE NOW report estimates that on an industry-wide basis:

• The total number of foreclosures prevented by mortgage servicers since July 2007 has risen to approximately 1.9 million.
• Mortgage servicers provided workouts for approximately 181,000 borrowers in June, an increase of 14,000 over May.
• Approximately 105,000 of the homeowners with prime and subprime mortgages who were helped by servicers in June received repayment plans; approximately 76,000 received loan modifications.
• Approximately 51 percent of all subprime workouts were modifications.