In her testimony before the State Assembly Select Committee on the safety and protection of at-risk communities in California, Faith Schwartz, executive director of the HOPE NOW alliance, said more than 279,000 California homeowners received mortgage workout solutions through October 2009.

Compared to an estimated 139,000 foreclosure sales in the state this year, workout solutions currently outpace foreclosure sales at a ratio of 2-to-1 in California.

“Nearly 500,000 California homeowners are delinquent on their mortgage by 60 days or more. These homeowners need assistance, and it is a significant challenge,” Schwartz said. “At the same time, the number of workout solutions offered demonstrates that help is being provided, and the mortgage servicing industry has made a serious commitment to helping distressed borrowers avoid foreclosures.”

Schwarz also reported on the President’s Home Affordable Modification Program (HAMP), which HOPE now members support and participate in. She testified that on average, the Treasury Department has reported that over 20,000 homeowners are approved every week for HAMP trial modifications, saving homeowners $550 a month on their mortgage. HOPE NOW said its goal is to turn as many trial modifications as possible into permanent modifications.

However, HAMP is not the only useful loan workout tool that servicers are using to help borrowers. According to HOPE NOW, 2.6 million homeowners nationwide received a non-HAMP mortgage workout that prevented foreclosure in 2009, and 5.8 million homeowners have taken advantage of non-HAMP workout solutions since mid-2007. These solutions include loan modifications, repayment plans, extended forbearance, deed in lieu, and short sales.

In an effort to help California borrowers facing foreclosure, HOPE NOW has held several events to give troubled homeowners the opportunity to meet face to face with their loan servicer. To date, these services have helped over 10,000 California borrowers avoid foreclosure, HOPE NOW said.

“HOPE NOW continues to encourage worried homeowners to seek help by calling the Homeownership Preservation Foundation’s Homeowner’s HOPE Hotline or by working with a local HUD-certified counseling organization that provides free counseling services,” Schwartz said. “HOPE NOW has also launched a web portal, HOPE LoanPort with six counseling agencies, six nationwide servicers, and a mortgage insurer.”

As DSNews.com reported, housing counselors can submit completed borrower applications and supporting documents for HAMP directly to servicers via the HOPE LoanPort. The status of these documents is able to be tracked, giving homeowners the answer they need more promptly. HOPE NOW said it has long advocated the role of HUD-approved, non-profit housing counselors in helping at-risk borrowers and is currently working with the Cabrillo Economic Development Corporation in Ventura, California, in the portal’s first phase. The Hope LoanPort is expected to launch nationwide in early 2010.