Whoops!!! The Treasury made a Mistake in HAMP Defaults!!!
I'm reblogging the below post from a very thoughtful agent who has been doing some research and following the success/failure of the governments HAMP program which was designed to help homeowners who were behind on their mortgage payments due to qualified hardships get some relief via doing a loan modification!
Please read this short but information dense post carefully.
You might want to read all the comments to the post too to get the full context of the meaning and import!
In an effort to FURTHER SPREAD THE WORD, please don't hesitate to reblog either the original post or my post as all involved are more concerned about getting the message out than who gets credit for doing so!
The Treasury Department recently released its progress report for HAMP (Home Affordable Modification Program) in July citing a redefault rate of 2% on the permanently modified loans. The HAMP program which is available on Fannie and Freddie Mac Loans publishes monthly all of the information at www.financialstability.gov
Gue
ss that there was a slight error in that figure and the Treasury quietly reissued the default assessment to be more like between 6 and 10%. Since up until around 6 months ago there were less than 100,000 modified loans through this program, the figures will probably go much higher considering the fact that these homeowners for the most part were already in positions of financial strain from the faultering economy. Barclays and Fitch believe the figures will be more like 60% default rate over the long haul.
You can read the entire article in DS News Here at: DS NEWS
You can find the July HAMP report in it's entirety on www.financialstability.gov The report is of interest to real estate agents since it affects customers who are in default and may be better served with a loan modification to stay in their house rather than the affect on their credit of a short sale or foreclosure.
Keeping homeowners in their homes will serve the market overall with better price supports and fewer foreclosures. The problem with HAMP many times is it is difficult for homeowners to navigate and understand the requirements and the system is overwhelmed with volume right now making it difficult for loan servicers and homeowners alike.
If you or anyone has questions about HAMP, or loan modifications, the new government web site with information is http://www.knowyouroptions.com or www.makinghomeaffordable.gov
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