Foreclosure figures released in a report Wednesday from the Federal Housing Finance Agency indicates the housing market is on the road to recovery.
The FHFA's 4th quarter 2012 Foreclosure Prevention Report, also known as the Federal Property Manager's Report, said foreclosure starts at Fannie Mae and Freddie Mac in the 4th quarter fell to 135,000 loans, the lowest level since the 3rd quarter of 2008.
Property dispositions outpaced property acquisitions during the 4th quarter, causing a further decline in Real Estate Owned properties.
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According to the report, in the 4th quarter 2012, the GSEs prevented 130,331 foreclosures by approving 97,689 modifications, new repayment plans and principle forbearance plans. The GSEs also completed 28,298 short sales and 4,344 deeds-in-lieu deals.
Forty-six percent of troubled borrowers who received loan modifications in the 4th quarter had their monthly payments reduced by more than 30%. More than one-third of 4th quarter 2012 loan modifications included principal forbearance, the FHFA said.
Fannie Mae and Freddie Mac completed more than 540,000 foreclosure prevention actions during 2012. This brings the total foreclosure prevention actions to nearly 2.7 million since the start of conservatorship in 2008, including more than 1.3 million permanent loan modifications, the FHFA said.
The number of Fannie Mae and Freddie Mac delinquent borrowers declined 14% in 2012 as mortgage delinquencies dropped in every state except New Jersey and New York, the agency said.
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