Homeowners Will Have To Fight To Keep Their Homes When HAMP Ends
Homeowners better have their loan modifications completed by December 31st or be prepared to fight their lenders. The HAMP program is coming to end.
The Home Affordable Modification Program was launched in 2009 in answer to the financial crisis. The program provided financial incentives to servicers and investors to modify mortgages of delinquent homeowners.
The end of HAMP comes against a backdrop of an improved economy and strong housing market. Monthly applications to the program have dropped 70% since 2010.
The U.S. Treasury sponsored program also assisted nearly 50% of its applicants in keep their homes.
HAMP also gave a blueprint for lenders and servicers to help modify mortgages for homeowners. The program also came with incentives for servicers and investors to modify loans for struggling homeowners.
The days of lengthy court battles are also coming to end as well. Therefore, the days of living in your house for free for years is over. Something the incoming Trump administration has made that abundantly clear.
Finch Rating Agency has also stated, “Modification decision timelines will shorten, which may lead to a modest reduction in liquidation timelines.”
Homeowners will be forced to fight their lenders for a modification.