A Total of 975,000 Loan Modifications are Completed

Only 331,000 of the 975,000 loan modifications that have been completed to date have been written under the federal government Home Affordable Modification Program (HAMP); the rest are the result of proprietary loan modifications from servicers and lenders.

What happens to borrowers when their modifications are turned down by HAMP?  In 45% of the cases the Lenders work out a proprietary modification.  Another 2.4% end up selling their homes through a Short Sale.  About 3% file for bankruptcy, thus delaying any final resolution on the home.  Another 10% end up losing the home to foreclosure.

The Treasury Department report on the program notes that there are wide discrepancies between servicers on what happens to those who request a modification.  To a large extent, it is the luck of the draw as to whether a loan modification will be successfully completed.  The loan modification process has, on the whole, slowed the progress of foreclosures.