Once again, one of the Obama administrations signature plans to help the ailing housing industry has posted the lowest numbers of preliminarty mortgage modifications since the program began in the spring of 2009. This is the 3rd month in a row of such dismal numbers with just 13,000 homeowners receiving initial modifications from HAMP (Home Affordable Modification Program) down from 15,000 in June which was already the lowest month since April 2009.

The foreclosure crisis continues to wreak havoc on the real estate market in general but on millions of American homeowners in particular. Former bailout watchdog Neil Barofsky called the programs administrative failures “breathtaking”. He noted that numerous studies and reports confirm the widespread abuse suffered by homeowners at the hands of the mortage services charged with implementing HAMP.

So far, fewer than 700,000 homeowners have received lasting help from the program vs the 3-4 million touted by President Obaam in February 2009. One of the biggest complaints by homeowners that enter “trial” periods of 3-4 months is that the banks repeatedly lose paperwork. Nearly 1 million trial and permanant modifications have been cancelled.

Barofsky also commented that while there have been fewer foreclosure filings in 2011 vs 2010, the slowdown is likely to be temporary since banks had intentionally delayed the processing of many cases due to the paperwork fraud scandal that exploded late last year.

If you’ve been unsuccessful in being accepted for or in completing a modification and you would like to consider the option of a short sale, give us a call. We are ready to help you understand and move through the process in order to put the stress behind you.