More foreclosures coming as over 1/3 of borrowers in Obama’s Make Home Affordable Program (HAMP) have defaulted
Over a third (1/3) of HAMP participants have exited the program and another batch is coming up. Those leaving the program will likely end up in foreclosure. Moreover, 4 million delinquent borrowers with Fannie Mae and Freddie Mac mortgages are not even eligible for  the program.

http://finance.yahoo.com/news/Borrowers-exit-troubled-Obama-apf-887634101.html?x=0


More than a third of the 1.24 million borrowers who have enrolled in the $75 billion mortgage modification program across the United States have dropped out. That’s more than the 27 percent who have managed to have their loan payments reduced to help them keep their homes. Not to mention the borrowers who could not negotiate a loan remodification with Fannie Mae or  Freddie Mac in the first place.

Last month alone, 150,000 borrowers left the program — bringing the total to 436,000 who have
exited since it began in March 2009. A major reason so many have fallen out of the program is the
Obama administration initially pressured banks to sign up borrowers without insisting first on proof of their income.

When banks later moved to collect the information, many troubled homeowners were  disqualified or dropped out. It’s unclear whether the approximate 1/3rd of borrowers who have dropped out did so because of their inability to produce proof of income documentation, or otherwise meet the initially loose technical requirements, versus individuals who just couldn’t afford their mortgages even though they had been reduced under HAMP.

A program critic says, “The majority of these modifications aren’t going to be successful,” said Wayne Yamano, vice president of John Burns Real Estate Consulting, a research firm in Irvine, Calif. “Even after the permanent modification, you’re still looking at a very high debt burden.”

On the other hand, not all 60-day delinquent loans are eligible for HAMP. Other characteristics may preclude borrower  eligibility. Based on the estimates, of the 5.7 million borrowers who were 60 days delinquent in the 1st quarter of 2010, 1.7 million borrowers are eligible for HAMP. As this represents a point-in-time snapshot of the delinquency population and estimated HAMP eligibility, we expect that more borrowers will become eligible for HAMP from now through 2012.

This program may apply to you.  Don’t let other homeowner’s failures in HAMP result in your own.  Discover a solution that’s right for you.  Call now to see if your mortgage qualifies 619 794 0460.


Only 30% of the 5.7 million borrowers who are 60 days delinquent are eligible for the program.
4 million delinquent borrowers are stuck. Of those eligible for the program, only 346,000 have completed the trial and received a permanent modification.
Many of those receiving a permanent modification will slip back into default and head for foreclosure as unemployment benefits expire, layoffs continue, and unemployment continues to grow.

***The forgoring article’s purpose is to INFORM Safer Law Blog readers regarding the current state of the HAMP program and is NOT INTENDED as legal advice.  Legal advice is tailored to Safer Law’s Clients’ specific factual situations ONLY.  If you are interested in becoming a client, or have questions about your facts then please do not hesitate to contact the author to schedule your free initial consult.  (619) 794 0460