Replies to This Discussion

Permalink Reply by Sandy Skover on February 6, 2011 at 9:36am

I think the HAMP &  HAFA program are a huge joke and WASTE of taxpayer funds.  I am appalled that so much money has been thrown at this problem to "help the homeowner" and really, very few homeowner's have been helped.  I say they should do a MASSIVE investigation and FOLLOW the MONEY~  Where has it all gone?  How many bogus companies have been created to "help" the homeowners.  It's more like a bunch of money grubbing people have found yet another way to stand at the public trough and get fed. The banks and the government, look for every way possible to cut commissions and restrain "free-trade".  

 

Permalink Reply by Mike Horton on February 6, 2011 at 11:58am

Unfortunately, the Making Home Affordable program has not had the success that everyone has hoped it would. However, it has helped in providing a structure that a few companies are trying to emulate. This structure with a more realistic set of boundary conditions would help homeowners prevent foreclosures. It seems to have this as a voluntary program by lien holders is also a mistake. I would make the MHA process mandatory with broader guidelines and force all lien holders who has governement affiliations to participate. No more outs with the phase that the program elements  has to also fit the lien holders requirements.  As an example if lien holders were forced to make the required net based on market pricing  for a short sale transparent to the owner and agents obtained during the evaluation process for loan modification, short sale deals would close faster since we could quit playing the guessing game of what they will take. I think we do need a program, but this one needs more work. 

Permalink Reply by Heidi White, CDPE, San Diego on February 6, 2011 at 3:21pm

Unfortunately, it appears that HAMP has been roundly used as an excuse to squeeze extra funds from homeowners during the 'Hamp Trial Period,' by participating lenders, rather than utilized to help more homeowners make their homes more affordable. 

Even without requesting it, homeowners discovered they qualified for the Hamp Trial Mod program and were told they had to make the trial payments. Consistently, even though many homeowners didn't miss a single agreed upon payment, during the Hamp Trial Period, the permanent HAMP modification is eventually denied and the foreclosure continues.

Then if they try to do a HAFA short sale, those are often denied as well - or the amount requested by the lender (the Pre-Approved Amount) is so high, it's clear they aren't serious about doing a Short Sale.

I think it's good that this program is getting some attention.

Whether it ends or not, a serious investigation would be interesting (albeit probably just another waste of taxpayer funds.)

It seems that the good intentions by the government, embodied by the Making Homes Affordable progams in all it's variations, has really failed mainly because it was built without bite - just a list of recommendations,  guidelines and modest financial incentives that don't really out-do the creative alternatives cooked up by the Default Servicing community.