Not a lot Helped by HAMP Loan Modifications

By
Real Estate Agent with remcoonline

 

President Obama’s HAMP program was designed to help 3 to 4 million homeowners facing foreclosure and was backed by $30 billion in federal funds. So far, HAMP has spent only $1.2 billion and helped only 670,000 homeowners, a far cry from it’s intended reach.

Bill Whitaker of CBS News took to the streets of Los Angeles and discovered that the program is not working.

Donnie Hines, who lived in her home for 16 years without missing a mortgage payment before losing her job, originally received a loan modification under Obama’s HAMP program. After 2 years of her bank requiring more unnecessary paperwork, losing paperwork, and failing to process her modification, Hines was ultimately told she no longer qualified for a modification due to long term unemployment.

Hines, like many homeowners in distress, sought help at an event hosted by nonprofit Neighborhood Assistance Corporation of America (NACA). NACA has organized events all over the country in an attempt to unite borrowers and lenders to work out loan modifications. These events have seen such a large turn out that desperate homeowners often line up throughout the night to attend.

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Rainer
6,285
miguel villarreal
remcoonline - Elizabeth, NJ

we have helped over 2000 home owners just in new jersey. www.remcoonline.com

Jun 22, 2011 12:41 AM #1
Rainmaker
352,371
J. A. Michail
Real Property Management of Sarasota & Manatee - Sarasota, FL
Real Property Management of Sarasota & M

HAMP was more of a PR stunt by the government to help blunt the reality of its complicity with the criminal banking syndicates.

Jun 22, 2011 12:46 AM #2
Rainmaker
71,592
Glenn Ritchie
First Team Real Estate - Fullerton, CA
Realtor - The OC.

Hello Miguel, I myself have experienced many people taking advantage of the HAMP program with positive results, not negative like you state. I see you live in NJ and give examples of only a couple having negative results in LA. Don't always go by what you read, I don't and give personal opinions nor do I believe what I read in the news. I try to only give my opinion on my personal experiences period not what I read. Bill is only out to get a good piece for the news and he has always been a little slanted.

 

Jun 22, 2011 12:57 AM #3
Rainer
17,970
Simon Webster
CRE Credit Services - Plano, TX

You mean one of the government programs didn't work? How about they don't let all companies with money keep making their own laws. 

Jun 22, 2011 01:27 AM #4
Anonymous
Anonymous
davephx

The problem is clear, the servicers make huge profits by foreclosing vs modifying since they only service the loans. Many like BofA are being sued by Attorney Generals such as in AZ for consumer fraud in their disregard for all the HAMP directives as well as failure to follow the Countrywide settlement agreement.

HAMP was a great program it was the banks refusal to follow the directives they agreed to follow as part of their TARP bailout.  TARP is now repaid with big profits to the taxpayers and in many cases like BoA the 22 securities firms that were stuck with bad mortgages were paid by the banks.  All the wealthy got paid, but few homeowners got modifications they qualified for (hardship, income test, net present value test)

Over half of the huge foreclosure losses are on the taxpayer via the GSE’s. SO its simply a transfer of profits from the taxpayer to the bank servicers when they foreclose and get all the fees for foreclosing, managing owned property and selling again.

Many say waited six months or a year being told they were being approved for HAMP, and making trial payments.  The banks intentional lose paperwork sent in many times including from Congressional offices and even the AZ Attorney General as detailed in their consumer fraud suit. They keep folks on long trials and often foreclose after they tell the homeowner they are still in review.

Banks often use fake numbers to deny based on NPV test and lie to homeowners.

Four Congressional hearings have confirmed all this but since HAMP was under TARP and not a law there is no practical way to enforce. So banks ignore the directives of Treasury and do what they can to deny, delay and foreclose as many as they can since the taxpayers in most cases take the loss and the bank servicers make their huge profits.

Read the AZ AG's lawsuit and you will be amazed
http://www.azag.gov/press_releases/dec/2010/Press%20Release%20-%20Bank%20of%20America.html

Jul 05, 2011 02:27 AM #5
Anonymous
Anonymous
davephx

The problem is clear, the servicers make huge profits by foreclosing vs modifying since they only service the loans. Many like BofA are being sued by Attorney Generals such as in AZ for consumer fraud in their disregard for all the HAMP directives as well as failure to follow the Countrywide settlement agreement.

HAMP was a great program it was the banks refusal to follow the directives they agreed to follow as part of their TARP bailout.  TARP is now repaid with big profits to the taxpayers and in many cases like BoA the 22 securities firms that were stuck with bad mortgages were paid by the banks.  All the wealthy got paid, but few homeowners got modifications they qualified for (hardship, income test, net present value test)

Over half of the huge foreclosure losses are on the taxpayer via the GSE’s. SO its simply a transfer of profits from the taxpayer to the bank servicers when they foreclose and get all the fees for foreclosing, managing owned property and selling again.

Many say waited six months or a year being told they were being approved for HAMP, and making trial payments.  The banks intentional lose paperwork sent in many times including from Congressional offices and even the AZ Attorney General as detailed in their consumer fraud suit. They keep folks on long trials and often foreclose after they tell the homeowner they are still in review.

Banks often use fake numbers to deny based on NPV test and lie to homeowners.

Four Congressional hearings have confirmed all this but since HAMP was under TARP and not a law there is no practical way to enforce. So banks ignore the directives of Treasury and do what they can to deny, delay and foreclose as many as they can since the taxpayers in most cases take the loss and the bank servicers make their huge profits.

Read the AZ AG's lawsuit and you will be amazed
http://www.azag.gov/press_releases/dec/2010/Press%20Release%20-%20Bank%20of%20America.html

Jul 05, 2011 02:28 AM #6
Anonymous
Anonymous
Kevin

Is the problem that not alot are being helped by the program? Or is the issue that banks are finding ways around the legislation? My mother has been trying to apply for HAMP for the past 9 months. In that time the bank has "lost" her paperwork 6 times. She has contacted the agency designated to helping with this process which has been NO help. Stating that " unfortunately, the bank has broken no laws, since there is no limitation on the time they are given to process the paperwork." Additionally she has to be able to prove that they have recieved the requested paperwork in the first place before they will even begin the process. So does the process work? I don't know she hasn't been permitted to register in over 9 months. Meanwhile the bank has tried to forclose on the property 3 times AFTER she has entered her application.

Jan 18, 2012 08:42 AM #7
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