That lack of jobs we mentioned a couple posts down has another effect: HAMP defaults are high.
Borrowers who received help through the government's main foreclosure
prevention program are re-defaulting on their mortgages at alarming
rates, a federal watchdog said in a report released Wednesday.
Nearly 1.2 million
mortgage modifications have been completed since the Home Affordable
Modification Program (HAMP) was first launched four years ago. Yet more
than 306,000 borrowers have re-defaulted on their loans and more than
88,000 are at risk of following suit, the Special Inspector General for
the Troubled Asset Relief Program (SIGTARP) found in its quarterly
report to Congress.
In
addition, the watchdog found that the longer a homeowner stays in the
HAMP modification program, the more likely they are to default. Those
who have been in the program since 2009, are re-defaulting at a rate of
46%, the inspector general found.
Charming.
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