The number of mortgage modifications completed by servicers in July dropped more than 17 percent from the previous month, and repayment plans shrank by 22 percent, according to the servicer alliance Hope Now. But the group stressed that those declines were part of a broader positive trend in foreclosure mitigation. “The good news is that in July, over 253,000 borrowers were helped through loan work out solutions, while foreclosure sales dropped,” said Faith Schwartz, the executive director of HOPE NOW. “This demonstrates the industry’s commitment to finding solutions to help people stay in their homes when possible.” Completed modifications fell in July to 80,167 from 93,921, and repayment plans for delinquent borrowers fell from 211,882 to 173,506. Schwartz, though, emphasized that trial modifications were on the rise, to 230,000 on the month. Those modifications, arranged

through the Obama administration’s Home Affordable Modification Program, can become final documented modifications of they remain current under the HAMP program for 90 days. “We are encouraged by the number of HAMP trial modifications being offered by servicers. Once those trial modifications become permanent, we expect the overall number of loan modifications for borrowers to increase,” Schwartz said. “Our HOPE NOW servicers and the mortgage industry, at large, are working hard to provide borrowers with solutions that best suit each individual situation.” Lenders and servicers in the mortgage industry are racing to meet a goal set by the Obama administration of 500,000 completed modifications by the start of November. HOPE NOW said it would also continue to use “homeowner outreach events” in target cities to educate interested borrowers and enroll as many as possible in loan workout programs. The next such outreach event is planned for Sept. 17 in Boston, the group said. A calendar of future such events is available on the group’s Web site, www.hopenow.com. “With unemployment expected to be a problem for a growing number of borrowers, the industry is exploring new solutions to help the increasing number of homeowners who may have difficulty paying their mortgage because of job loss or a reduction in income,” Schwartz said.