According to the U.S. Treasury mortgage payments have been modified and fewer individuals would face foreclosure proceedings.
Reports show that at the end of January:
• At the end of January, 947,000 households had received a deduction in their mortgage payments through HAMP.
• 3% of 1.7 million households are eligible for HAMP.
• 116,297 homeowners received permanent modifications
o September:1,711
o October: 5,181
o November: 31, 382
o December: 66,465
• About 60,000 trial modifications were canceled due to lack of time available to verify incomes.
• 76,482 modifications were approved and waiting for signature by the homeowners.
Bank of America: 22% of temporary modifications were finalized.
Trial modification: 221,395
Permanent modification: 12,761
Wells Fargo and Co. and J.P. Morgan Chase and Co.: modified about 38% of qualified loans.
Almost half of 92,000 homeowners who had successfully completed their trial modifications would get approved for a final modification.
Citigroup Inc.: completed about 50% of the modification for the clients that qualified.
Expectations of Modification program
• Interest rates as low as 2%
• Loan term can be extended up to 40 years.
• Decrease amount of foreclosure
Some lenders have entered homeowners into trial modifications without accurately evaluating their status to make sure they qualify. Overall, the modification programs have saved home owners $2.2 billion, on average saving $500 a month.
The goal for the Obama administration is to modify three to four million mortgages until 2012.
For those who did not qualify for any type of workout plan, foreclosures and short sales might possibly be the next step. An estimated 2.4 million foreclosures will take place this year. On a lighter, note lenders are effectively working in order to decrease that amount.
Contributor, designer & admin for JohnHart Gazette.
