Well, we cannot file this one under news.
HAMP failing is the topic of an Arthur Delaney story in the Huffington Post.
As well as numerous rants, about failed government policies on mortgages and foreclosure, on this blog.
Estimates in the article of HAMP failure range from 60% to 90%.
This counts only the approved modifications, most of my Detroit area foreclosure calls report the inability to even get a modification.
Yesterday, 10 month trial period, followed by denial.
The program is supposed to be, they review everything, and make a preliminary deal for a new payment.
If you make 3 monthly payments, on time, at the new amount, you are supposed to get the permanent modification.
Let me know if you got one.
1.4 million homes taken since Obama took office.
And check out the term “shadow inventory” in the linked to post on this site.
Not only is the HAMP program not working, it is running out of gas.
More people canceled and dropped out the last three months than signed up, and June was a 12 month low for new HAMP applications.
Reportedly, less than 5% of the HAMP modifications, that get done, include principal reduction.
That is, reducing the total amount owed on the house.
So, they are just re-shuffling what you owe them, maybe extend the term out to 30 years, maybe temporarily lower the payment.
With at least 15 million homes out there worth less than what is owed on them, how does this help?
Michigan homes are almost certain to continue to fall in value, as we need people with jobs to buy homes and we have been losing jobs for 6 straight years.
The more they foreclose, the more they sell, the more supply, that lowers the price in the market.
Which puts more homes underwater, more incentive for people to bolt, or more often, leave because they cannot afford the payments, and the mortgage companies won’t work with them.
HAMP Foreclosure Prevention Failing
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