The Treasury Department recently released figures that indicate approximately 91,000 borrowers dropped out of the Home Affordable Modification Program (HAMP) in June, putting the total number of dropped-out borrowers to 530,000. Meanwhile approximately 49,000 borrowers received a permanent modification in June, bringing the number of total active permanent modifications to 389,000.
Therefore, more than forty percent (40%) of the 1.3 million borrowers who started in HAMP since March 2009 have dropped out and over thirty percent (30%) received permanent modifications. Of the projected 3.1 million loans eligible for HAMP, only thirteen percent (13%) of borrowers have received permanent modifications. It is also important to note that approximately 9,000 of the 530,000 HAMP dropouts received permanent modifications through the program but were unable to continue to make the modified mortgage payments.
Tisha Black Chernine, Esq.