One in Four Would-be HAMPers Drop Out
HAMP has not been a big hit among the about-to-get-foreclosed on set, leaving participants feeling used and abused by the runaround with little to show for it.
And the data confirms what would-be HAMPers have been saying all along.
More than 122,000 borrowers had their trial mortgage modifications canceled in April, bringing the total to 277,640 since the program began about a year ago, according to federal statistics released Monday. Meanwhile, only about 68,000 homeowners were converted from these trials to permanent modifications.
Under the program, known as HAMP, eligible troubled borrowers are put into trial modifications to determine whether they can keep up with the lowered payments and to give loan servicers time to verify income and hardship.
Some 295,348 people have received permanent long-term help under the loan modification plan, but another 3,744 have had their permanent modification canceled.
Modifications are usually canceled if the borrower fails to make the adjusted payments or does not hand in the required income verification paperwork during the trial period.
So far, some 24.6% of trial modifications have become permanent, up from 19.8% a month ago.
Some 637,353 troubled borrowers remain in trial modifications, officials said.
So the "official" numbers say 1 out of 4 homedebtors (to call them homeowners would be silly, don't you agree?) have dropped out of the program or otherwise failed to modify their loans.
Let me tell the Treasury why HAMP hasn't and will never work (depending on what you define "work" as): many of these people were never meant to be "homeowners" in the first place. Some just hit a rough patch and need a little help but most - certainly more than 1 out of 4 - should have never gotten home loans. Under any circumstances, more specifically the Humpty Dumpty circumstances we have now that mean trying to glue him back together any way possible.
Sorry, he ain't getting fixed. Ever.
And let's be clear about the goal of HAMP. I doubt it is to help the homedebtor, as advertised, but instead meant to help the banks clean up the garbage loans they have rotting on their balance sheets that couldn't get cleaned up via mark-to-Disneyland accounting changes. Duh.