With all the talk about the housing market recovery and fewer foreclosures, the Obama administration says the Foreclosure Mitigation Program definitely had a part in it.
Complications of mortgage servicing are still of great concern to the administration, even though there has been a decline the amount of mortgage delinquencies.
The June Scorecard reported fewer delinquencies and re-defaults compared to traditional loan modifications.
Since 2009, the Making Home Affordable Program has helped 1.6 million homeowners. 1.2 million homeowners that qualified for HAMP assistance have benefited from permanent loan modifications, saving them on average $536/mo. This is a 39% reduction of their former payment structure.
Tim Massad, Treasury Assistant Secretary for Financial Stability stated, "Homeowners who receive help from the Administration’s HAMP program continue to show success at avoiding foreclosure, which benefits families, communities and the economy. HAMP has also put into place important standards for the mortgage servicing industry that have improved outcomes for struggling families more broadly."
Of the current homeowners who have received permanent HAMP modifications, $10.6 billion has been issued in principal reduction, totaling 69% of all that qualified in May 2013. Also in the same month, approximately 170,000 homeowners were able to execute a deed-in-lieu of foreclosure and short sales through the Home Affordable Foreclosures Alternatives Program, also known as HAFA.
Nationally there are 15 major markets that contribute the majority of HAMP modifications. Chicago ranked in the highest category, showing over 35,000 HAMP modifications.
So, if you are one of our neighbors in the Chicago real estate market and you are having difficulty with your mortgage payments, you are encouraged to pick up the phone and talk to your lender about options to avoid foreclosure.
http://www.pahroo.com/Obama+Scorecard+Says+Foreclosure+Mitigation+is+Working.
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