When numbers for the federal government’s Home Affordable Modification Program were being released near the end of last summer, backlash came quick. It has been originally reported that of 650,000 trial modifications, only 1,700 were made permanent. The program was being hailed as a failure and homeowners were understandably skeptical.
However, the latest numbers through the month of September are telling a different story. In a report released January 15, the Treasury Department states that more than 110,000 modifications have been permanently offered out of about 850,000 total modifications that were started on a trial basis. Of those 110,000, 66,000 have been accepted and another 46,000 await signatures from the borrower.
Including all 850,000 modifications, borrowers “have had a median payment reduction exceeding $500.”
The department has said they have stepped up efforts to hold banks accountable and it seems to be having a positive effect.
The process itself still remains fraught with challenges, though, and some of the best results are likely reaching borrowers with third party representation. There are too many easy mistakes to fall victim to.
If you think a modification is the answer for you, somewhere between 2 and 3 million more homeowners remain eligible for the program through 2012.
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