Below is an interesting interview from the folks at Yahoo Finance with Senator Ted Kaufman. Kaufman chaired a recent panel looking at the effectiveness so far of the Home Affordable Modification Program and has come to the conclusion that the program has generally been a failure. That is largely because the program started with a goal of modifying 3-4 million mortgages in order to avoid foreclosures but is on pace to actually modify 800 thousand or fewer.
Of course for those 800 thousand homeowners the program has not been a failure but the overall numbers are much lower than hoped for. The good news for those of you who are interested in a loan modification is that The Treasury is still hoping to work toward that 3-4 million goal. So if you are interested in a modification or a government-backed refinance contact us in the sidebar and we will give you some guidance on the best programs for your family.
Here are some excerpts from the write up associated with the interview:
The Congressional Oversight Panel has declared President Obama’s Home Affordable Modification Program (HAMP) a failure, laying much of the blame at the feet of the Treasury Department.
“Treasury was in a very tough situation but the result is a lot less mortgage modifications than we hoped for,” says Sen. Ted Kaufman (D-Del.), the panel’s chairman. “It’s a failure in regard to fact we originally hoped to save 3 to 4 million American families from foreclosure and are now on target to do 700,000-800,000.”