According to records HAMP has failed at generating the initial guaranteed 3 to 4 million permanent loan modifications. Actually HAMP has surpassed its one millionth trial or permanent mortgage modification between June 2010 and July 2012. The Treasury reports that 770,834 borrowers either did not qualify for the program during that period, or failed to finish a 90 day trial. Additionally, 229,185 permanent modifications redefaulted after making the first three consecutive monthly payments during their trial process.noticeable it’s one millionth failing this drop. HAMP is the acronym Home Affordable Modification Program.
According to the Treasury assessments that one in three HAMP trial modifications are unsuccessful and the permanent modifications typically are put into another bank modification program, and nearly 16 % of all temporary or "trials" end in the property being foreclosure.
So why the huge failure? One reason has been attributed to many of the servicers staff appear to be improperly trained and show a negative attitude when speaking with distress homeowners. It has also been reported that management by Treasury of the big financial institutions in complying with HAMP.
It has been projected that only one third (1/3) of the initially approximated 3 – 4 million property owners will get support. With a price of over $75 billion dollars. It indicates that the cost of this programs to us taxpayers is roughly $75 thousand dollars per assisted homeowner.
Only time will tell if the system was worth it.
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