6,941 borrowers get loan principal reductions

The Home Affordable Modification Program (HAMP) helped 657,044 homeowners avoid foreclosure in June through permanent loan modifications – up from 633,459 in May, according to Treasury Department statistics.

However, while the number has grown, the numbers still fall short of the initial goal to help 3 million to 4 million borrowers through HAMP, which since 2009 has reduced mortgage payments to help borrowers avoid foreclosure. (Homeowners in the program must make a few trial payments before the loan modification becomes permanent.)

For underwater homeowners – those who owe more on their mortgages than their home is currently worth – about 6,941 have participated in a principal-reduction program, up from 4,911 last month, the Treasury Department reported.

For borrowers who qualified to have their loan balances reduced, the median principal reduction was $67,751, or 30.7 percent.