The HAMP modification has been compromised. Obama's mortgage assistance program designed to provide debt help for homeowners has been sabotaged.
The problem is that homeowners are not able to obtain a permanent modification through the program because they do not get approved after the HAMP trial modification.
Approximately 70% of HAMP trials started through JP Morgan and Chase are not approved. Approximately 50% of the 1.4 million trial modifications through the Making Home Affordable Plan have dropped out.
Now ask yourself; how it is that a program that was created and developed with terms chosen specifically because those terms allowed a projected eligibility of 3 - 4 million homeowners has only been able to issue 1.4 million trials and only half of those participants still have a shot of obtaining a permanent modification. That means about 1/5 to 1/7 of all those who originally qualified will not qualify according to the lenders hosting this program.
Oh Yeah, one other important detail that you may be curious to here about....
the lenders are given 1,000 dollars cash per HAMP trial!!!!!!!
The lenders are taking advantage of the fact that homeowners don't know squat about contract law, the mechanics of the MHA HAMP Compliance measures, and have not a clue of the importance of communicating through writing nor do they understand how important it is to keep records. Now even if a homeowner was well aware of these aspects of lender negotiations when would a full time, hard working American homeowner get the chance to keep up with these tasks. They are time consuming and extremely stressful. This is even more true when you consider how much more mentally exhausting it is to deal with loss mitigation talks when it is your personal finances and financial well being that is of interest.
I have talked to many homeowners and read many emails from homeowners and the scoop is this...
Many homeowners have not a clue that they are even in a trial modification! Homeowners can't get their head around why they should not even bother talking and or listening to anything that the "customer service agent" aka DEBT COLLECTING LIARS AND HOME WRECKERS who just lie, lie, and lie.
Homeowners are not making payments with the coupons. They say "coupons? what coupons?" It is a total cluster duck of a situation. It is not hard to communicate the idea that the payment coupons are the means for tracking the HAMP trial modification. The lenders just don't make an effort besides putting the directions in print. If the homeowner calls typically the lender won't mention the coupons. I would not be surprised if we were all to find out that the vast majority of entry level customer service agents that work for the major lenders are not even aware of the payment coupons themselves.
You know what the homeowners could use????
They don't know what to do.
They are overwhelmed and most of them are working twice as hard to find work, or they are just working more hours. They are fighting for their crumbling marriage. They are trying not to worry their kids. They are in shambles. They HURT they CRY they need HELP.
I just posted a new article that takes a closer look at the negotiation playing field between lender and homeowner. Take a look if you are interested.
Homeowner Risk and HAMP Modification