HAMP’s Disappointing Results

So far the HAMP program has been disappointing.  While over 1.3 million have been approved for trials through July 2010 only 616,839 trials have actually turned into permanent loan modifications. A total of 255,954 trials are still active and will be decided upon in the next couple months for whether they will become permanent.

The problem seems to be that many trials were approved without income verification.  When the homeowners have been faced with turning in paperwork to move the trial into permanent status, many have had difficulty coming up with the complete documentation, while others have failed to show adequate income to proceed with the permanent loan modification.

There is a silver lining.  About half of those who have fallen out of the HAMP program have gotten help through other programs or have become current on their payments.