Digital News Report – The US Housing Department and Urban Development released a housing report and discussed how the Home Affordable Mortgage Program has helped almost 400,000 homeowners with a permanent home loan modification since April of 2009. With the government run refinancing mortgage loan program, the 346,000 that have completed the modification process with a permanent status save on average over $500 per month on their mortgage payments.
Altogether there has been 1.2 million homeowners that have started the government’s home loan modification process with a trial period since April of 2009. The trial modification usually runs for around 3 months, the homeowner needs to make the determined payments on time and consistently for the trial period, and they also are required to file more paperwork that may be needed during that time period. On the makinghomeaffordable.com website, they say that many fail the trial period because they did not complete all the necessary paperwork before the trial period has ended.
HUD said that the loan mortgage companies have had 2.8 million homeowners that have received restructured modifications on their mortgages. The number is higher because lenders are also sometimes offering modification programs that don’t fit the government home loan modification program requirements.
HUD’s housing scorecard now is reporting the monthly Making Home Affordable Program Servicer Performance Report. This data includes the HAMP loan modification data which shows the number of permanent modification showing on average a 50,000 per month growth over the last four months. Around half of those homeowners that weren’t eligible for the HAMP permanent modification were offered an alternative modification from the lender. There was less than 10 percent of those HAMP participants that moved to a foreclosure sale. HUD says that non-HAMP modification programs being offered by the lenders have been patterned after the government home loan modification program. HUD also said that those that don’t qualify for the HAMP program might be able to participate in the Administration’s Foreclosure Alternatives Program which helps a person relocate to more affordable housing.
By: Victoria Brown