One of the issues that were in question was the lack of accountability of lenders.
We Buy Houses – House Buyers Charleston SC: The federal government began a program last year to help stop the massive number of foreclosures that were occurring, and still are, throughout the nation. The program known as HAMP has helped about three quarters of a million homeowners to avoid foreclosure. The goal was three to four million, however.
The Congressional Oversight Panel made up of bipartisan members determined that the program did not live up to its goals or expectations. It is not exactly being called a failed program, per se, because it helped many who would have otherwise lost their homes. It has been determined, however, that the program didn’t do what was expected for as many as they thought it would help.
The US Treasure Department was in charge of the program and the Panel has criticized them for their failure to keep better records, collect adequate data, and set better goals. One of the issues that were in question was the lack of accountability of lenders and those that service the mortgages to keep proper paperwork and for losing that paperwork on repeated occasions. The mortgage servicers also were prone to resisting the modifications because they didn’t benefit from them.
“The program didn’t do what was expected for as many as they thought it would help.”
One of the positives that came of the program, besides the thousands that benefited, was the development of in house loan modifications through lenders directly. Some of the lenders have had their own in house programs for some time, but this government program helped to increase the instance of that happening. It is known that private lenders have many more stories of loan modifications within their own companies than the Treasury was able to help.
There was approximately $30 billion in place for the HAMP program to reduce the number of foreclosures, but only about $4 billion was actually spent doing so. The program needs serious revamping and the window for doing so has been passed because their window of funding for improvement of the program has expired. The Congressional Panel states that the Treasury did not recognize or acknowledge the difficulties in the program in time enough to correct them.
If you have a home in foreclosure and can’t modify your loan through your lender, there is another way to keep the foreclosure off of your credit record. You can sell your house to an investor and be finished with the entire process in a week or less. This won’t save your home, but selling is far better for your credit health than foreclosure.
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