The results aren’t looking good for the much-touted federal foreclosure prevention program known as HAMP (Home Affordable Modification Program). Struggling homeowners probably shouldn’t hang their hopes on this program providing a permanent solution for their housing woes. From Reuters:
The Treasury has stated its goal for the $75 billion Home Affordable Modification Program was to cut monthly payments for 3 million to 4 million “responsible” homeowners by the end of 2012 — excluding speculators or those who bought vacation homes.
The Treasury released figures this week showing it had assisted 1.3 million homeowners so far, but over 40 percent of them — around 530,000 — have dropped out of the program. In fact, more borrowers dropped out than those who achieved permanent status in June.
A forty percent dropout (ie, “failure”) rate? The Los Angeles Unified School District might be proud of a number like that, but by any other standard that would equal failure. Unfortunately, this program is just proving to be another false hope on the road to the inevitable and imminent (and long overdue) continuation of the housing correction.
-CH
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