Loan modification cancellations way up; Feds whitewash problem

The numbers of the following report are really dismal when compared to the government’s projections of the impact of the HAMP program. It is true that the banks will have to experience more “pressure” before they do the right thing.

Problem is, the Feds think that publishing a report and holding back a few payments, courtesy of the tax payers, will do the trick. Laughable.

If you don’t want your loan modification to go from a “trial” to a cancellation, the best bet by far is to retain an A rated, experienced attorney with plenty of testimonials.

Number Of Homeowners In Loan Modification Program Rises In October

Steven and Lisa Maultsby outside the home they lost to foreclosure while awaiting a loan modification.

WASHINGTON -(Dow Jones)- An Obama administration program designed to prevent foreclosures gave struggling homeowners a little more relief.

Treasury Department statistics released Wednesday showed the Home Affordable Modification program helped 735,464 U.S. homeowners avoid losing their homes through permanent loan modifications as of October.

That number was up from the figure of 720,612 for September that was reported a month ago.

While reflecting improvement, the number is well below the initial program goal of helping 3 million to 4 million borrowers.

HAMP was designed to assist homeowners suffering after the housing bubble burst. Lenders get incentives to help borrowers avoid foreclosure by reducing their mortgage payments.

The data Wednesday showed 883,076 permanent loan modifications had been started since the program began in 2009. But 147,612 were canceled–an increase of 11, 250 from September.

Included in the report Wednesday on the housing market were assessments for the 10 largest mortgage servicers participating in the Making Home Affordable Progam.

“The mortgage servicing industry lacked accountability and transparency when this crisis started,” said Treasury’s Assistant Secretary for Financial Stability Tim Massad. …we will keep this up so that the industry continues to change its ways.”

Homeowners often make trial payments before a loan modification can become permanent, and some people have had their modifications canceled.