Here's the Latest News on the HAMP Loan Modification Program
Ann Arbor homeowners who have tried to have your loans modified and not been success, read this post.
Written by my friend Melissa Zavala who has closed over 500 Short Sales this year, when she writes I listen.
"The report states that the government’s loan modification program (HAMP) has not provided assistance to the 3 or 4 million homeowners that Barack Obama stated would receive more sustainable mortgage loans when the Home Affordable Modification Program (HAMP) was launched in March of 2009. Instead, only about 700,000 will have benefitted from this program."
As I commented on Melissa's blog, we now don't even have our clients bother with Loan Modifications, we go straight to short sale and get it sold. I
t is too bad we have to do this but after many trying for a year, and the banks loosing documents over and over again...a short sale iis more effective.We have a listing coming on the market (actually 2) where the homeowners have tried for a year to modify their loan. They want to live there, but one of the parties on the mortage lost their job and they would be a perfect candidate for the reason the HAMP program was launched.
Call us today to review your home if you are upside down on your mortage, have negative equity or need to sell.
Just the other day, on Tuesday, December 14, 2010, the Congressional Oversight Panel (www.cop.senate.gov) issued a report that provided a scathing commentary on the HAMP program (Obama’s loan modification program)--stating that it has not been nearly as effective as previously hoped.
The report states that the government’s loan modification program (HAMP) has not provided assistance to the 3 or 4 million homeowners that Barack Obama stated would receive more sustainable mortgage loans when the Home Affordable Modification Program (HAMP) was launched in March of 2009. Instead, only about 700,000 will have benefitted from this program.
It is interesting to note that while the Treasury initially committed $75 billion of Troubled Asset Relief Program (TARP) funds to the HAMP initiative, it now appears Treasury will spend only $4 billion on HAMP incentives.
The members of the panel even stated that government’s loan modification program was “ineffective,” and they claimed that the Treasury’s reluctance to address flaws of the program has had “real consequences.”
The report made by the Congressional Oversight Panel also states that the Treasury has failed to hold loan servicers accountable when they have repeatedly lost borrower paperwork or refused to perform loan modifications.
While the latest report on HAMP goes into more detail, it clearly corroborates what most borrowers and real estate aficionados have already experienced—that the concept of a loan modification for troubled borrowers is not as successful or effective as everyone would have hoped.
Facts about the latest assessment courtesy of the Congressional Oversight Panel
Opinions are my own ;-)
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