The HOPE NOW Alliance, which consists of private sector mortgage servicers, counselors, and investors who are working together to combat the growing foreclosure problem, recently released their August housing figures which showed that nearly 2.3 million homeowners have been able to avoid foreclosure in the past 14 months.

According to Hope Now, in August 2008 mortgage servicers helped homeowners avoid foreclosure by completing 188,931 mortgage workouts, 78,853 modifications, and 110,078 repayment plans. Also key is the fact that recorded foreclosure sales in August dropped to 86,594 from 91,902 in July.

“Without HOPE NOW, the current mortgage and financial crisis would be more serious and harder to turn around,” said Faith Schwartz, Hope Now executive director. “We will continue to work hard to help homeowners and stabilize communities.

Despite the high numbers of foreclosures prevented however, large numbers of borrowers, especially prime borrowers, are still in trouble. These figures also show that the total number of workouts made in August was actually a decrease from July's rate of 192,220 which has some wondering if lower foreclosures were the result of not being able to handle the high volume of defaulting loans, rather than a true reflection of a decreasing problem. It may be that only time will tell if this decrease in foreclosures is a lasting one.

In related news, the HOPE NOW Alliance also recently praised the passage of the Emergency Economic Stability Act of 2008. “This legislation sends an important message to homeowners that, like the home lending industry, policymakers want to do everything possible to avoid foreclosures and keep families in their homes,” said Schwartz. “This landmark legislation will improve the credit market and reduce some of the legal impediments that have slowed the ability of mortgage servicers to adjust existing loans.”

To view the full press release, click here.