US home foreclosures jump in 3rd quarter-regulators

* Newly initiated foreclosures up more than 30 percent

* Efforts to keep borrowers in their homes down

By Dave Clarke

WASHINGTON, Dec 29 (BestGrowthStock) – U.S. home foreclosures
jumped in the third quarter and banks’ efforts to keep
borrowers in their homes dropped as the housing market
continues to struggle, U.S. bank regulators said on Wednesday.

The regulators said one reason for the increase in
foreclosures is that banks have “exhausted” options for keeping
many delinquent borrowers in their homes through programs such
as loan modifications.

Newly initiated foreclosures increased to 382,000 in the
third quarter, a 31.2 percent jump over the previous quarter
and a 3.7 percent rise from a year ago, the Office of the
Comptroller of the Currency and the Office of Thrift
Supervision said in their quarterly mortgage report.

The number of foreclosures in process increased to 1.2
million, a 4.5 percent increase from the second quarter and a
10.1 percent increase from a year ago, according to the
regulators.

The report, which covers 33 million loans serviced by
national banks and federally regulated thrifts, also shows a
sharp drop in the amount of loan modifications processed
through the Home Affordable Modification Program (HAMP), the
Obama administration’s leading foreclosure prevention effort.
HAMP loan modifications fell by almost 46 percent in the third
quarter, according to the report.

Regulators noted, however, that loan modifications done by
servicers outside of HAMP increased by 10 percent in the the
third quarter.

Overall home retention actions taken by banks to keep
borrowers in their homes dropped by 17 percent compared to the
second quarter.

(Reporting by Dave Clarke, Editing by Chizu Nomiyama)

US home foreclosures jump in 3rd quarter-regulators