Home Affordable Modification Program Modifications down 27%

loan modifications
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New data was released on 9/22/10 by Treasury and HUD on the Home Affordable Modification Program (HAMP).  Just over 33,000 homeowners received a PERMANENT HAMP modification in August, 2010.  This figure is down 27% below the number of PERMANENT HAMP modifications in July, 2010. 

The borrowers whom received the PERMANENT HAMP modifications have seen their mortgage payments drop by a median of 36%, or more than $500 per month.  Homeowner’s who received these modifications saw their housing expenses fall from 45% to 31% of their monthly income

In August, 2010, 26,628 TRIAL HAMP modifications were added to the HAMP roster.  Currently there are 202,521 active trial modifications.  Federal officials are pushing the loan servicers to make decisions for borrowers who have completed the trial phase and either drop them from the program or make them permanent modifications. 

The Treasury stated that the most of the cancellations are due to insufficient documents received or missed or late trial payments.  In addition, if their principal housing expenses are already less than 31% they do not qualify for the program.

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Distressed Options for Homeowners in California

If you have found yourself falling behind in your mortgage and debt obligations, you aren’t alone.   With the loss of jobs and declining home values and the current economy, homeowners like you are forced to consider options that were unthinkable a few years ago.

The US Department of Housing and Urban Development (HUD) has established a hotline to assist homeowners who are facing a hardship.  You can contact HUD at their toll free number 1-877-483-1515 to find out what options are available to you:

1)      Loan Modification

2)      Short Sale

3)      Foreclosure

To learn more about the tax consequences of a short sale versus a foreclosure, you can visit the IRS web site at www.irs.gov.  Before executing any of these options, consult with a certified public accountant or tax attorney.

Governor Schwarzenegger has instituted a statewide, 90-day halt on foreclosure proceedings for each owner-occupied home subject to a first mortgage on which a Notice of Default has already been file.

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