Well guess what? After years and years of work….nothing worked…for homeowners at least.
The banks on the other hand….millions in their pockets!
In recent years, the government tweaked HAMP, opening it up to more borrowers and giving higher incentive payments for principal reduction. But after years of horror stories, homeowners reasonably wanted nothing to do with the program, the way squirrels learn not to eat the poisonous berries. In the most recent SIGTARP statistics, 13,231 homeowners started permanent HAMP modifications in the 3rd quarter of the year, while 13,226 others re-defaulted, leaving a net increase in active modifications of just five. Permanent modifications have decreased in 16 of the last 17 quarters.
Treasury Department spokesman Mark McArdle has defended HAMP by touting the fewer modification denials in recent years, which coincides with fewer homeowners bothering to apply. Treasury also alleges in recent reports that 58 percent of borrowers denied a HAMP modification received some alternative modification from their servicer or resolved their delinquency, without noting whether that alternative made the homeowners’ financial situation better or worse.