Contributing to the current high share of distressed mortgages is a longer than average foreclosure processing time in Pennsylvania and New Jersey, which keeps homes in the foreclosure pipeline longer. The share of mortgages at risk of foreclosure has now begun to decline in Philadelphia—the result of four years of modest job growth, fairly stable gains in home prices, and local legislation in 2008 that sharply curtailed foreclosure activity.
Administration programs are providing much needed relief to Philadelphia MSA.From the launch of the Administration’s assistance programs in April 2009 through the end of May 2014, more than 151,800 homeowners have received mortgage assistance in the Philadelphia MSA. Nearly 89,000 interventions were completed through the HAMP and FHA loss mitigation intervention programs. An additional 62,800 proprietary mortgage modifications have been made through HOPE Now Alliance servicers. While some homeowners may have received help from more than one program, the number of times assistance has been provided in the Philadelphia metropolitan area is more than four times the number of foreclosures completed during this period (37,300). In addition, the landmark National Mortgage Servicing Settlement in February 2012 has benefitted more 9,418 Pennsylvania homeowners as of June 30, 2013.
HUD’s Neighborhood Stabilization Program is funding community improvements. The Neighborhood Stabilization Program helps localities work with non-profits and community development corporations to turn abandoned and foreclosed homes that lower property values into homeownership opportunities and the affordable rental housing that communities need. In the Philadelphia MSA, $86.8 million in NSP funds have been awarded to local communities along with an additional $22.4 million which the State of Delaware has sub-allocated to communities in the MSA. The scorecard spotlight describes some of the NSP investments made by the City of Philadelphia.
For more information, visit www.hud.gov.
