Not a lot Helped by HAMP Loan Modifications

The problem is clear, the servicers make huge profits by foreclosing vs modifying since they only service the loans. Many like BofA are being sued by Attorney Generals such as in AZ for consumer fraud in their disregard for all the HAMP directives as well as failure to follow the Countrywide settlement agreement.

HAMP was a great program it was the banks refusal to follow the directives they agreed to follow as part of their TARP bailout.  TARP is now repaid with big profits to the taxpayers and in many cases like BoA the 22 securities firms that were stuck with bad mortgages were paid by the banks.  All the wealthy got paid, but few homeowners got modifications they qualified for (hardship, income test, net present value test)

Over half of the huge foreclosure losses are on the taxpayer via the GSE’s. SO its simply a transfer of profits from the taxpayer to the bank servicers when they foreclose and get all the fees for foreclosing, managing owned property and selling again.

Many say waited six months or a year being told they were being approved for HAMP, and making trial payments.  The banks intentional lose paperwork sent in many times including from Congressional offices and even the AZ Attorney General as detailed in their consumer fraud suit. They keep folks on long trials and often foreclose after they tell the homeowner they are still in review.

Banks often use fake numbers to deny based on NPV test and lie to homeowners.

Four Congressional hearings have confirmed all this but since HAMP was under TARP and not a law there is no practical way to enforce. So banks ignore the directives of Treasury and do what they can to deny, delay and foreclose as many as they can since the taxpayers in most cases take the loss and the bank servicers make their huge profits.

Read the AZ AG's lawsuit and you will be amazed
http://www.azag.gov/press_releases/dec/2010/Press%20Release%20-%20Bank%20of%20America.html

The problem is clear, the servicers make huge profits by foreclosing vs modifying since they only service the loans. Many like BofA are being sued by Attorney Generals such as in AZ for consumer fraud in their disregard for all the HAMP directives as well as failure to follow the Countrywide settlement agreement.

HAMP was a great program it was the banks refusal to follow the directives they agreed to follow as part of their TARP bailout.  TARP is now repaid with big profits to the taxpayers and in many cases like BoA the 22 securities firms that were stuck with bad mortgages were paid by the banks.  All the wealthy got paid, but few homeowners got modifications they qualified for (hardship, income test, net present value test)

Over half of the huge foreclosure losses are on the taxpayer via the GSE’s. SO its simply a transfer of profits from the taxpayer to the bank servicers when they foreclose and get all the fees for foreclosing, managing owned property and selling again.

Many say waited six months or a year being told they were being approved for HAMP, and making trial payments.  The banks intentional lose paperwork sent in many times including from Congressional offices and even the AZ Attorney General as detailed in their consumer fraud suit. They keep folks on long trials and often foreclose after they tell the homeowner they are still in review.

Banks often use fake numbers to deny based on NPV test and lie to homeowners.

Four Congressional hearings have confirmed all this but since HAMP was under TARP and not a law there is no practical way to enforce. So banks ignore the directives of Treasury and do what they can to deny, delay and foreclose as many as they can since the taxpayers in most cases take the loss and the bank servicers make their huge profits.

Read the AZ AG's lawsuit and you will be amazed
http://www.azag.gov/press_releases/dec/2010/Press%20Release%20-%20Bank%20of%20America.html

Is the problem that not alot are being helped by the program? Or is the issue that banks are finding ways around the legislation? My mother has been trying to apply for HAMP for the past 9 months. In that time the bank has "lost" her paperwork 6 times. She has contacted the agency designated to helping with this process which has been NO help. Stating that " unfortunately, the bank has broken no laws, since there is no limitation on the time they are given to process the paperwork." Additionally she has to be able to prove that they have recieved the requested paperwork in the first place before they will even begin the process. So does the process work? I don't know she hasn't been permitted to register in over 9 months. Meanwhile the bank has tried to forclose on the property 3 times AFTER she has entered her application.