With 3.5 million foreclosures threatened for 2010, the Home Affordable Modification Program – hamstrung by bureaucratic hurdles – is effectively serving only a fraction of eligible homeowners. Despite some success in trial modifications, with no real bank incentive provisions and continued economic hardships including mounting job losses, the program will face an uphill battle to fulfill its promise of rescuing those at risk of losing homes. See the following article from Housing Predictor for more on this.
Bureaucratic stumbling blocks and red tape have hampered the government’s mortgage modification plan, helping only a small number of Americans stay in their homes, Treasury Department officials acknowledged.
The Obama Administration’s Home Affordable Modification Program (HAMP) has permanently modified only 66,000 homeowner mortgages from more than 4-million that may be eligible for the plan. Another 46,000 modifications in the works are awaiting only the borrower’s signature.