HAMP Redefaults Approaching 50%

In baseball, they say that you can’t tell the players without a scorecard. But in the case of the HAMP scorecard, most can tell what is happening with it. The noted HAMP program, which the government created to help struggling homeowners has been less than successful.

According to recent Treasury Department numbers, nearly 50% of the 1.3 million homeowners who have accepted loan modifications have slid out from the program.

By July’s end, 421,804 homeowners enrolled in permanent HAMP loan mods, while an additional 255, 934 borrowers found themselves in trial mods. All together, 677,738 homeowners were in the HAMP program but the almost that many – 629, 751 found that they had washed out of the program.

With all of the people we have talked with and helped, we figure that about half the people we talk  with  have either struck out  or will soon slide out of the loan mod programs – HAMP or otherwise. Not that we see everything with the glass half empty, au contraire, but being realists we see many of these loan mods as only benefiting only one party – the banks. Sure, some of the loan mods help some distressed homeowners but many loan mods only prolong the inevitable and keep the homeowners trying to climb out of a muddy sinkhole and banks well fed.

Like in America’s pastime, we still see a lot of cheers for the obvious. The banks and government tend to be rah-rah when it comes time to saying how great they are and how many loan mods they have created but when things turn a little ugly, that information often tends to get swept under the base paths.

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Filed under Loan Modifications, Mortgages

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