subject: HAMP Home Loan Modification - New Program For 2010 [print this page] Will 2010 Be The Yr The from the HAMP loan modification? As 2010 begins and lenders appear to continue efforts to mitigate losses will corporate tycoons finally pony up and demonstrate a new level corporate responsibility? Although many lenders have created substantial efforts in assisting distressed borrowers, they haven't yet made a dent within the enormous number of poor loans that have to be mitigated. The latest report from the FHFA issued on October 2nd 2009 presents a mixed bag of outcomes as follows: * Trial mortgage modifications under HAMP much more than tripled from June 2009 to August 2009, from 66,200 to 202,200. * Completed loan modifications decreased by 13 percent over the prior quarter to 32,300. * Fifty-four % of mortgage modifications completed within the second quarter resulted in borrowers' payments decreasing by 20 percent or more, compared with only 8 percent 1 year earlier. * Mortgage delinquencies continued to increase throughout the quarter as higher levels of unemployment contributed to new delinquencies. * Foreclosure moratoria associated with HAMP have contributed to the increase in delinquencies as fewer seriously delinquent loans are transitioning to foreclosure. Edward DeMarco, Acting Director from the Federal Housing Finance Agency, states "We expect the number of completed mortgage modifications to improve as homeowners complete the HAMP trial period," said DeMarco. "Fannie Mae's and Freddie Mac's efforts with servicers and homeowners are critical to preventing unnecessary foreclosures and to keeping people in their homes." Under the HAMP program you will find currently 728,408 active adjustments. 697,026 are within the trial period and 31,382 have been created permanent. Of the more than 728,000 HAMP trials under way across the country, 375,000 are scheduled to convert to a permanent modification by the end of the yr, and only 31,382 have made the transition! As you can see lenders haven't met their commitments to date, and as anyone who has tried to work with a lender knows, the efforts involved in obtaining assistance are completely monumental. Many borrowers and mortgage modification practitioners complain about lenders who consistently claim they do not have documents that have been sent time, after time. Long delays in the "review" process are commonplace and it appears to most that lenders are stonewalling on purpose. This is when a loan modification business is a great thing to have on your side. I was speaking having a loan modification company recently and they were very excited for the brand new HAMP guildelines coming out in October of 2010. Beneath the brand new guidelines, the lender ought to consider a principal reduction to get the monthly payments beneath the 31% cap. This is really a huge difference from the previous recommendations, which made principal reductions pretty a lot a last resort. If you would like to learn much more about the brand new HAMP recommendations and loan adjustments, just click the links in my resource box below!
HAMP Home Loan Modification - New Program For 2010
