More Homeowners Receiving Principal Reductions Under HAMP

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This is hard to understand. Why does the American Taxpayer stand still for the government taking their money to reduce the debt of a lot of people that the taxpayer doesn’t even know? It should not be a function of our government to pay for some people’s debt and not others. For a more detailed look at this subject – please read the article below.

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As of September, more than 1.2 million homeowners have received a permanent modification through the Home Affordable Modification Program (HAMP), according to Treasury.

Those granted permanent relief through HAMP are saving approximately $547 on their mortgage payments each month—almost a 40 percent savings from their previous payment on average. Government officials say this represents a total estimated savings of $22.9 billion in monthly mortgage payments since the inception of the program.

Homeowners currently in HAMP permanent modifications with some form of principal reduction have been granted an estimated $12.1 billion in reduced principal, Treasury reports. Of all non-GSE loans eligible for principal reduction entering HAMP in September, 72 percent included a principal reduction feature, according to the Department’s latest report.

Servicers awarded 12,884 permanent HAMP modifications in September, of which 5,854 included principal reduction. September’s program numbers are down considerably compared to the previous month when an estimated 19,100 permanent mods were granted to struggling borrowers.

The government’s Home Affordable Foreclosure Alternatives (HAFA) program showed even greater monthly falloff. In September, Treasury reports 11,816 homeowners exited their homes through a short sale or deed-in-lieu of foreclosure with assistance from HAFA, compared to approximately 21,000 HAFA transactions completed in August.

To read the complete article – please use the link below.

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