Housing: Treasury HAMP/Making Home Affordable Modification Servicer Status Report: just 31,000 mods made permanent

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EPIC fail. Will have video up shortly. Diana Olick broke it down, of the 3 million delinquent mortgage pool in the report,  1 million eligible, then down to 700,000 made trial mods then 30,000 of those FAILED trial mods and 31,000 passed into permanent mod status.

The % they are reaching is laughable (in an hysterical crying and screaming sort of way). The program was supposed to help 4 MILLION HOMEOWNERS. They have helped 31,000. THIS MORNING Geithner was claiming they were making meaningful progress. Gawd help us.

CNBC:

So far the 78 banks and servicers in the HAMP, which represent 85 percent of the total mortgage market, have just over 3 million loans on their books that are at least 60 days past due. So they sent out notices to those 3 million borrowers requesting more information.

A lot of those borrowers (as high as 50 percent) didn’t respond, according to the banks. Some don’t even live in the houses anymore. Gone. Of those that did respond, just over a million had at least the verbally stated income to qualify for a modification under the program. Others were either not owner-occupants, didn’t have the income level, or were unemployed. So 1,032,837 were offered modifications. But only 759,058 modifications were started. Why? Because a lot of the borrowers just didn’t want them. They would rather try to sell the house or go into foreclosure and walk away. Remember, some borrowers are so underwater on their loans, that they will never see equity again, so why bother making any modification payment, even if it is affordable.

Of the 759,058 modifications started, 697,026 are still in the three month trial phase. That’s when you’re supposedly making your monthly payment and gathering all the necessary documentation for the modification. Since the program really kicked into gear over the summer, we didn’t have any numbers on how many succeeded in the trial period and went permanent, until today.

Treasury reports that 31,382 trial modifications are now permanent. It also reports, well I had to do the math because they didn’t put it on the report, but a spokesperson did independently confirm, that 30,650 modifications were disqualified.

Presumably, the vast majority were either determined ineligible when all their paperwork came in at the end of three months, or they weren’t current on their payments,” the Treasury spokesperson told me….

December 10, 2009. Tags: , , , , , , , , , , , , , , . Cabinet, Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St.

One Comment

  1. CINDY W. replied:

    Outrageous, shame on everyone responsible for this.

    I have FINALLY gotten a modification, it was NOT a 3 month wait, it has been a SIX MONTH wait, that ultimately resulted in my OWING way more than I once did, NO PRINCIPAL reductions. AND a new negative escrow of SIX THOUSAND, which suddenly appeared AFTER I signed the final modification documents. About ten days later.

    I am not sure if I saved anything, other than a place to be at least while the interest rate remains lower.

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