Since the Treasury launched HAMP (Home Affordable Modification Program) in March 2009, the participating servicers have started approximately 1.4 million trial modifications with 519,648 of them converted into permanent status. A borrower is supposed to move out of a trial when it he or she has made three monthly payments under the new terms and has submitted all documentation.
Trial mods transitioning to permanent status have been averaging about 37,000 for the past six months, but during the month of October, only 23,750 permanent modifications were granted.
The Treasury says of active trial modifications, 69,000 have lasted at least six months, down from more than 266,000 at the beginning of the second quarter of 2010. More than half (719,487) of the 1,395,543 trial plans started have been canceled.
Other statistics from the September Treasury Making Home Affordable Report:
- Top mortgage servicers have completed 91,827 short sales or deeds-in-lieu of foreclosure on canceled trial or declined modifications through the HAMP as of September, up 27% from the previous month.
- The top eight servicers - including BofA, Wells Fargo, Chase, CitiMortgage, GMAC - have canceled 551,821 trials either due to a redefault, lack of documentation, or the borrower was deemed ineligible. Those same servicers have declined 842,436 homeowners from entering a trial.
- Of the canceled trials in that time, 47,001 have been liquidated through a short sale or the homeowner gave up the deed-in-lieu of foreclosure. Of the mortgages that were denied from a trial, 44,826 went into short sale or deed-in-lieu for a total of 91,827.
If you are a Las Vegas homeowner who would like to know if you qualify for a HAMP loan modification or a HAFA short sale, contact us for schedule a Foreclosure Alternatives Consultation.
Are you a Las Vegas area homeowner who has tried a HAMP or other loan modification and now must consider a short sale or other altervative to foreclosure?
Jan O’Brien is an expert with the Las Vegas short sale process. She is the co-author of the Certified Foreclosure Alternatives Consultant designation course. Call Jan direct at 702-858-9191 to schedule a Foreclosure Alternatives Consultation today.
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