The Home Affordable Modification Program (HAMP) seems to be helping at least some distressed homeowners, but as of June 1, 2010 all Mods must be based on verifiable income. The following write-up adds some additional insight:
HAMP Modifications Jump Sharply
The number of permanently modified home mortgages rose by 30 percent in April to about 25 percent of the 1.2 million trial modifications started under the Treasury Department’s Home Affordable Modification program begun a year ago.
Treasury officials say many modifications were cancelled because of loan servicers’ failure to verify homeowners’ income. Beginning June 1, the program requires that all modifications be based on verified income statements.
“We expect a much lower rate of cancellations going forward as the percentage of verified income modification increases,” said Herbert Allison, assistant Treasury secretary for financial stability.
Source: Los Angeles Times, Jim Puzzanghera (05/18/2010)
This is some good news that this program is finally starting to gain traction. It is sad it has been so long in coming. Many more people have lost their homes waiting for their lender to help them. I hope the trend continues and helps many more homeowners keep their home. For some, the HAMP program will only be a band-aid and unfortunately foreclosure will follow.