Foreclosure Defense Florida

HAMP Mortgage Modifications- Nothing Really Happening…

The Federal Government spends bajillions of dollars telling us that they’re trying to help homeowners in the foreclosure crisis.   Problem is, according to their own numbers:

  • Over 900,000 Americans have begun trial modifications since the program’s inception and over 110,000 have been approved for permanent modifications as of December 31, 2009.
  • Over 100 servicers have signed up to participate in HAMP, covering more than 89% of mortgage debt outstanding in the country.

So the problem is, 89% of mortgage loans are covered by this program that we’re paying $75 billion dollars for and only 110,000 consumers have benefited from….guess who reaps the biggest benefit from all this….


Details of the new HAMP boondoggle can be found here. Under the new initiative:

  1. New Requirements that Documentation be Provided Before Trial Modification Begins

    Today’s guidance refines the documentation process and makes it easier for eligible borrowers in trial modifications to get permanent modifications quickly.   Under this guidance:

    A simple, standard package of documents will be required prior to the servicer’s evaluation of the borrower for a trial modification. This process will be required for all new HAMP modifications that became effective after June 1, although mortgage servicers may implement it sooner.

  2. Converting Borrowers in the Temporary Review Period to Permanent Modifications

    In December, Treasury implemented a review period through January 31 to provide servicers additional time to collect and submit missing documentation for borrowers in trial modifications, to require that borrowers be notified of any missing documents, and to give borrowers an opportunity to dispute and correct any erroneous information in their applications. Today’s guidance clarifies for servicers the proper procedures for conversion of those borrowers who are current on their monthly payments to permanent modifications.

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