What will be the projections for 2012 foreclosures?
What will be the projections for 2012 foreclosures
?
Originally, projected HAMP was suppose to help 3 million to 4 million struggling homeowners to keep their homes, but since the inception of the HAMP program it has only helped about 700,000 to 800,000 homeowners and some of those have already defaulted on their mortgage loan modification. With the last evaluation of the Home Affordable Modification Program this December 14, 2010 the result was the same. Even though the program has undergone some tweaks here and there the results were the same.
Problem is the projected number of foreclosures to take place in 2012 towers to as many as 13 million! How is this program helping anyone? As of the end of October only 520,000 permanent modifications have actually been made. According to Ted Kaufman the former U.S. senator from Delaware who is now the chairman of the Congressional Oversight panel has concluded the program has turned out to be a lot smaller and have a LOT less impact than we originally thought.
The Treasury department lost the authority to further restructure the HAMP program back in October of this year and the truth is lenders are offering more loan modifications through their own process than through the governments. The report also cited several reasons for the program's failure. Servicers, who were hired by the lenders to manage the loans, were delaying foreclosures due to being able to charge the homeowner more in late fees and other fees. It was not mandatory for the servicers to participate in the program.
How is the foreclosure mess ever going to end if lenders and servicers are not required to assist struggling homeowners? With all the news surrounding foreclosures, there is talk now of the mortgage interest rate deduction being reviewed and perhaps homeowners will not be able to us this in the future to deduct mortgage interest.