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HAMP Permanent Modifications Reach 340,000

by the zac team @ RE/MAX Greater Atlanta

Greetings neighbors,

According to recent reports from the Treasury Department, servicers participating with the Home Affordable Modification Program (HAMP) handled a total of 340,459 permanent modifications through May 2010 since the launching of the program last March. This number is up from the total number of permanent modifications through April of 2010 which were 299,092.

For borrowers to officially receive permanent modifications a total of three payments must be paid on time during the trial period and all documentation must be submitted.

Last month, servicers transformed a total of 47,724 trial modifications into permanent status. This number was actually a 30.1% decrease from April's number of 68,291. In addition, the month of May consisted of a total of 6,357 canceled permanent modifications with 124 mortgages being paid off.

Set to expire towards the end of 2012, the Obama Administration set an early goal for HAMP to provide aid to approximately 3-4 million borrowers before its expiration. Within the past 14 months servicers have reached over 10% of that number.

HAMP is Starting to Look Up with a Rise in Permanent Mortgage Modifications

by the zac team @ RE/MAX Greater Atlanta

Hello neighbors,

It looks like the Obama Administration's $75 billion foreclosure prevention program is making some type of progress slowly but surely. According to recent numbers, permanent loan modifications rose by approximately 13% during April of this year. Out of the total 1.2 million trial modifications, 295,348 were made permanent.

 During the trial period, homeowners received reduced monthly payments for a total of 90 days by approximately $500. In order for the modifications to become permanent, homeowners were required to make the reduced monthly payments and submit additional paper work.

However, there have been some cancellations in both trial and permanent modifications. Through the month of April, there were a total of 277,640 trial modifications canceled and 3,744 permanent modifications canceled by servicers. Failure to verify income before granting temporary modifications by servicers is said to be one of the chief reasons in the cancellation of these modifications.

In attempts to alleviate this issue, starting June 1, 2010, modifications will only be granted after verifying the homeowner’s income.

Because many have been criticizing the program's not so hasty pace, the Obama administration started pushing mortgage services to pick up the pace in the conversion of modifications from trial to permanent last December. This push from the Obama administration tripled the number of modifications.

As for the city with the most activity with the Home Affordable Modification Program (HAMP), Los Angeles-Orange County accounts for 6.2% with 57,758 modifications.

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Photo of Zac Pasmanick  Real Estate
Zac Pasmanick
RE/MAX Metro Atlanta Cityside
600 Virginia Avenue NE
Atlanta GA 30306
Office: 404-564-7272

 

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