Here's the Latest News on the HAMP Loan Modification Program

Mellissa - I am surprise to learn that only close to 700,000 borrowers qualified under HAMP loan modification program. Did the HAMP program ineffective or the servicers did not cooperate, or both?

Thanks for the information.

The banks and the government.

Can any good come out of this marriage?

Melissa, we certainly are not surprised by the findings?!  I am wondering what they will put in place to do something in a positive vein now or will they just let it slide?

Wow that is a real shocker Melissa:) Talk about the blind leading the blind. This was a useless program from the start. Lenders always do what is in their best interests regardless of anything else.

Melissa, I am off to reblog it as i know many, many, many in my area that have not been able to modify. I just gave up and we go straight to short sales. But, this will be helpful for them to know the facts!

Melissa - do you know WHY the loan modifications didn't work? I would be interested to understand that.

Melissa, I'm surprised that the numbers for the loan mods are so low.  I'm with Lori on this one.  I'd love to know why they didn't work.  In theory it would have been a real savior for many.

Good Morning Melissa

Thanks for the post. Have a great day.

The question is not did Obama and Congress lie, they did!

The question is what happened to the other &71,0000,000,000.00?

Bill

Yet abother failure in a long line from our Government. Who protects us from our protectors?

Melissa - But did any of us seriously in the trenches believe this was going to be a raging success?

Having helped clients successfully modify their loans, ( HAMP/Traditional) I will say this - it's extremely annoying how these lenders/servicing companies"misplace" paper work. I find it even more frustrating that the left hand doesn't talk to the right hand in this process, with processors who are not properly trained and flying by the seat of their pants with homeowner's fate dangling in the wind. (Which leaves not only homeowners frustrated, but us as well!)

One of my favorite quotes comes to play on a daily basis for this process - "The definition of insanity is doing the same thing over and over again and expecting different results."

When it comes to dealing with these lenders/servicing companies, valuable time, some unavoidable repetition and unique approaches at pushing paperwork come into play. This unfortunately, is keeping many Realtors submerged in paper work and keeping them from selling homes. (Short sells or otherwise.)Many homeowners are faced with losing their homes due to the government red tape & ill trained processors, who pass the buck and conveniently lose paper work!

 I told one supervisor at a lending company, " Yes, I understand that your company never received the paper work ... for the third time, but trying to work with your company is like wiping my @$$ with a hula-hoop - I expect you to personally handle this file and get back to me in 48 hrs." He did in fact get the faxed paper work and called me the following day to let me know it had been processed and was now in underwriting... but it shouldn't have to be this way!

The real problem, IMHO, is that while the government allocated money, the solution involved, get ready now, THE CRIMINALS AT THE BANKS..

But I'm sure my guess is WAY off base??

These programs only rewarded the banks and hurt the homeowner.

I too just re-blogged this article. In February 2009 I wrote one that predicted the failure, since in my Sun City Neighborhood most loans were already too far underwater to qualify.

Awe shucks.  This is so easy.

The homeowner in distress is not going to give Timothy Geithner, Christopher Dodd or Barney Frank a cushy job when they leave office.

Excellent article and great information, thanks.