HAMP a bust, defaults rise
The article below outlines the shortcomings of the Obama HAMP loan modification program. While this is considered bad news, there is hope. Mortgage modifications may not be working but there are still many more options. Short Sale, refinancing, Deed in lieu of foreclosure, and many others. The good news, you don’t have to figure this out on your own. We are help to help you understand your options. Email or call us for more information.
According to a federal report released Friday, only 36,695 homeowners received long-term mortgage modifications in July under the Obama administration’s Home Affordable Modification Program, known as HAMP. This brings the total to 434,717 borrowers who have successfully made it out of the trial phase. A month ago, 51,205 delinquent borrowers were given long-term assistance, but the number of people falling out of the program is on the rise. Some 12,912 homeowners had their permanent modifications canceled in July, 272 of whom paid off their loans. “While there has been some stabilization in the housing market, it remains clear that we have more work ahead,” said Raphael Bostic, assistant housing secretary.
“We know that we must continue to provide support to underwater borrowers, unemployed homeowners, and to the nation’s hardest hit neighborhoods.” Foreclosure prevention programs have taken on renewed importance with the housing market on shaky ground again. A spike in foreclosures, combined with weak housing sales, could send home prices plummeting again. In July, foreclosures were up 3.6% from the month before but down 9.7% from the year earlier period, according to RealtyTrac. The latest report comes two weeks after the government had to revise its June redefault figures sharply higher, after analysts called the initial numbers misleading. The revision showed that nearly 20% of homeowners were at least two months delinquent nine months after receiving a permanent modification. The initial figure showed that 7.7% had fallen behind. The government did not provide redefault statistics for July in the current report. Officials said the data would be released quarterly. An alysts at Barclay’s Capital said last month said 60% of homeowners may ultimately redefault.
