NEW YORK (Reuters) - U.S. mortgage companies helped slightly fewer of borrowers avoid foreclosure in May, but the second quarter will likely be the best in a year-old program to ease the housing crisis, according to data from an industry alliance.

Mortgage servicing companies negotiated new payment plans with about 100,000 troubled homeowners, and changed the terms on another 70,000, the Hope Now alliance said on Wednesday. At the current pace, total "workouts" would reach 519,000 in the quarter, the most since the data series began in July 2007.

Total workouts for May eased from the 182,901 Hope Now reported for April.

Overall modifications by servicers have increased since last year as lenders boosted efforts to curb pressures on their profits and investors caused by soaring delinquencies. They are also responding to increased calls from regulators and lawmakers to get ahead of the wave of foreclosures that are depressing home prices and U.S. economic growth.

Hope Now, which includes big mortgage companies such as Wells Fargo & Co. (WFC.N: Quote, Profile, Research), was created under guidance from the U.S. Treasury to share information and cut foreclosures. Member companies have helped 1.7 million homeowners in the past year, but many economists still expect foreclosures to rise and home prices to fall.

UBS Securities on Tuesday forecast that foreclosures would not peak until mid-2009 because of falling home prices, tighter lending and an economic recession.

Sales of foreclosed homes edged up in May from April, Hope Now data showed. Mortgage companies reported 163,649 sales in the two months combined, on pace to far exceed the 198,172 sales in the first quarter.

(Reporting by Al Yoon; Editing by Tom Hals)