HAMP Program Show Homeowner Defaults Increasing

aparently around some 29% or 184,000 homeowners who have received HAMP modifications through the Troubled Asset Relief Program as opposed to through a government-sponsored enterprise (GSE) have re-defaulted. This has cost taxpayers $972 million in incentives that have been paid out to investors and servicer for these modifications. Approximately 26% or just under 154,000 borrowers participating in Since the government introduced its Home Affordable Modification Program (HAMP) approximately 1.25 million homeowners have had their loans modified, but worryinglymodifications.

 since then 27% have gone on to re-default on
these loans. These figures have come from a quarterly report to Congress and were compiled by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). According to the article in DS News, SIGTARP pointed to the Treasury that they should’ve heeded previous recommendations regarding the Home Affordable Modification Program, and that as far back as April the Inspector General had expressed concern over the increasing number of homeowners defaulting on permanent mortgage 

Click here for the rest of the story by out friend Allison Halliday at reality biz news

ApGSE HAMP programs have re-defaulted. At the end of August another 10% of loans modified with HAMP were delinquent. Worryingly, the longer a homeowner has to remain in HAMP, the more likely they are to re-default. Amongst the oldest HAMP modification the re-default rate rises to 48.3%.