GSEs Increase Short Sale Activity in May, Foreclosure Sales Decline

GSEs Increase Short Sale Activity in May, Foreclosure Sales Decline

BY: ESTHER CHO

In May, the total for completed short sales climbed higher month-over-month for the GSEs, while the number of foreclosure sales declined, the Federal Housing Finance Agency (FHFA) revealed in a report last week.

Together, Fannie Mae and Freddie Mac completed nearly 9,100 short sales in May, up 14 percent from April. However, completed short sales declined from around 11,440 in May 2012.

Completed foreclosures far out numbered short sales in May, at about 17,800 in May, but the figure represents a

decrease from 19,735 foreclosures in April and 24,588 a year ago.

When combining all foreclosure prevention actions for May, FHFA found the GSEs provided nearly 39,300 borrowers with alternatives to foreclosure. Of that total, 19,800 were permanent loan modifications.

From January to May of this year, the GSEs have helped 210,805 homeowners through foreclosure prevention actions. Solutions that led to homeowners giving up their home (short sales and deeds-in-lieu) totaled 50,652, while home retention solutions, such as loan modifications, numbered 160,153.

Since the start of the GSEs’ 2008 conservatorship, Fannie Mae and Freddie Mac have completed 2.9 million foreclosure prevention solutions. About 1.4 million of those foreclosure alternatives were loan modifications, while 453,000 were short sales and around 716,100 were repayment plans.

Delinquencies for the GSEs also decreased month-over-month, with the delinquency rate for loans 30 to 59 days past due at 1.57 percent in May, down from 1.62 percent in April. The 60-plus delinquency rate fell from 3.37 percent to 3.29 percent over the last month

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