{"id":197,"date":"2011-04-06T23:14:00","date_gmt":"2011-04-06T23:14:00","guid":{"rendered":"http:\/\/www.westcoastbk.com\/blog\/?p=197"},"modified":"2013-10-30T00:11:18","modified_gmt":"2013-10-30T00:11:18","slug":"is-hamp-a-colossal-failure-what-is-next-for-homeowners-seeking-loan-modification","status":"publish","type":"post","link":"https:\/\/www.westcoastbk.com\/blog\/2011\/04\/is-hamp-a-colossal-failure-what-is-next-for-homeowners-seeking-loan-modification\/","title":{"rendered":"Is HAMP a Colossal Failure? What is Next for Homeowners Seeking Loan Modification?"},"content":{"rendered":"

By Ryan C. Wood<\/a><\/p>\n

The Home Affordable Modification Program began in March 2009 and it could not be clear that HAMP is a colossal failure.\u00a0 The Obama administration set a goal to help 3 to 4 million American homeowners.\u00a0 HAMP has only helped a tiny portion of that goal and has not reached the vast majority of American homeowners feeling the effects of the mortgage crisis.\u00a0 The Congressional Budget Office estimated $72 billion in Troubled Asset Relief Program money would be available to fund HAMP.\u00a0 Recently the Congressional Budget Office provided that HAMP would end up costing taxpayers $22 billion.\u00a0 It would seem that servicers are collecting fees from the HAMP program without providing permanent loan modifications to distressed homeowners at the expense of all taxpayers.<\/p>\n

To top it all off, on Tuesday March 29, 2011, Congress voted 252 to 170 in favor of ending HAMP altogether.\u00a0 President Obama has provided he will veto any attempt to end HAMP and whether the Senate will agree with Congress to end HAMP still remains to be seen.\u00a0 Most likely HAMP will continue as a program that gives hope to distressed homeowners but does little to actually successfully modify their loans permanently.<\/p>\n

Has HAMP Helped Direct Loan Modifications From Servicers?<\/strong><\/p>\n

According to statistics released by services and the Treasury Department the number of loan modifications services issued on their own and not according to HAMP number 4 to 1.\u00a0 One positive of HAMP is that it arguably increased the number of loan modifications than prior to the implementation of HAMP.\u00a0 The argument is that servicers had very little incentive to modify loans.\u00a0 But why are there so many more loan modifications if you seek modification directly from the servicer instead of applying for a HAMP loan modification?\u00a0 One reason seems to be that services offer less favorable terms of modification, higher fees that are prohibited by HAMP and the servicer loan modification has a higher rate of repeated default.<\/p>\n

So What is Next?<\/strong><\/p>\n

The HAMP program should be revised to make the loan modification process more transparent and implement mandatory structured procedures for mortgage companies and servicers to follow.\u00a0 Simply asking for documents and then continually asking for more information gives homeowners false hope.<\/p>\n

If you are having trouble making your mortgage payment, or are behind on your mortgage payments bankruptcy can help.\u00a0 A free consultation with one of our Bankruptcy Lawyers<\/a> or Bankruptcy Lawyers<\/a> usually lasts 30 to 40 minutes depending upon the complexity of your case.\u00a0 Call today toll free 877-963-9543 to start your new life debt free today.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Home Affordable Modification Program began in March 2009 and it could not be clearer that HAMP is a colossal failure. The Obama administration set a goal to help 3 to 4 million American homeowners. HAMP has only helped a tiny portion of that goal and has not reached the vast majority of American homeowners feeling the effects of the mortgage crisis. The Congressional Budget Office estimated $72 billion in Troubled Asset Relief Program money would be available to fund HAMP. Recently the Congressional Budget Office provided that HAMP would end up costing taxpayers $22 billion. It would seem that servicers are collecting fees from the HAMP program without providing permanent loan modifications to distressed homeowners at the expense of all taxpayers.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"_links":{"self":[{"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/posts\/197"}],"collection":[{"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/comments?post=197"}],"version-history":[{"count":8,"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/posts\/197\/revisions"}],"predecessor-version":[{"id":1084,"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/posts\/197\/revisions\/1084"}],"wp:attachment":[{"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/media?parent=197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/categories?post=197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.westcoastbk.com\/blog\/wp-json\/wp\/v2\/tags?post=197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}