subject: HAMP Programme Fails as Modifications Remain Elusive [print this page] Author: Julie Thompson Author: Julie Thompson
With great hype the HAMP programme had been unfurled by the Obama government at the beginning of this year to help contain increasing foreclosures. It was expected to modify loans to affordable levels so that the borrowers would not default on their mortgages. But as the year draws to a close there is no doubt that the plan has failed.
The positive results have been negligible. Only 31,382 homeowners across USA have been able to reach the permanent status of modification till 30th November under this scheme HAMP, according to the findings of the Treasury. First American CoreLogic meanwhile has predicted that another 1.7 million residential houses will slip into foreclosure in 2010.
Lisa Sitkin a lawyer attached to Housing & Economic Rights Advocates of Oakland, California commented, HAMP is turning out to be something of a disaster. There are delays and lost steps at every turn. The bureaucratic requirements are endlessly frustrating.
One of the victims of this chaos is Richard Leong residing in Daily City, California. He has been the owner of his house from 2000. But after being laid off he started to default on his mortgage. In 2008 he made contact with his servicer JPMorgan Chase asking for a modification. He tried to get in touch with the bank once a week at the least. He said, I've been calling them so many times; each person gave me different answers. All my savings and 401(k) are gone; right now I'm totally drained of money.
Chase did not deny that Leong had been attempting to get his loan modified since 2008 November but nothing could be done because he had no earnings to show. Speaking on behalf of Chase Gary Kishner said, Under HAMP, there needs to be some type of income to qualify for a modification. If there is no income, there is no way to sustain anything.Sometime later Leongs wife got employed in Sacramento but Kishner states that the banks has yet to get any proof of their earnings.
This sort of incident has now become very common holding up of modification because of joblessness.
Suggestions are coming forth to address this particular side of the problem. Today foreclosures are not being caused only by sub-prime mortgages. The main issue is unemployment. Rev. Lucy Kolin representing of an interfaith group PICO National Network said, The second wave of foreclosures is related to the terrible unemployment figures. There is no program set up to deal with homeowners who are unemployed.About the Author:
Julie Thompson, has been working on foreclosure1.com studying the foreclosures market, helping buyers on the finer points of foreclosure homes for sale. Try to visit foreclosure1.com and begin your foreclosures by state search.
