AGs Say 70% Don't Get Help.

Washington -- A task force convened by 11 state attorneys general claims that seven out of 10 seriously delinquent home mortgage borrowers "are not on track for any loss mitigation option."

While praising the loan servicing industry for their cooperation and efforts to help borrowers, representatives of the foreclosure prevention task force, led by Iowa's attorney general, Tom Miller, say that more still needs to be done.

The task force found that among those delinquent borrowers who are communicating with their servicer, 45% are working toward a loan modification.

The attorneys general findings are somewhat at odds with data from Hope Now, an alliance of servicers formed to promote streamlined modifications and other efforts to keep troubled homeowners in their homes.

Hope Now estimates that servicers helped 869,000 borrowers with repayment plans and modifications during the second half of 2007, 545,000 of them subprime borrowers.

That group's updated data suggest that 68% of delinquent subprime borrowers were helped in the second half of last year, up from a previous estimate of 39%.

Also, Hope Now said that while foreclosure starts have increased, only about one-third of foreclosure actions that are initiated actually end with a foreclosure of the home.