The government introduced the Home Affordable Modification Program (HAMP) back in March 2009 . 

HAMP and saint louis short sales

At this time there was a lot of positive press and many homeowners thought that this would be their answer to the problems that faced them in the current housing climate. 

However, many people facing foreclosure applied and few were successful. 

There are many cases all over the internet of people in need of a foreclosure rescue who were told phone call after phone call that there loan would be accepted and worked out in the HAMP program.  The story continues that after months of this run around and anxious waiting, the end result is another heartbreak as the HAMP program would not satisfy their loan.  As of late December the program had been successful in helping roughly 760,000 loans get modified. 

Wait just one minute though. 

Only 31,000 of these loans have actually passed through the approval process and been designated as permanently modified. 

We cannot speculate as to how many of the remaining loans will be permanently modified.  However we can say that after roughly nine months since the program was introduced, that this program has helped a mere 3,500 households a month save their homes.   It has also cost the taxpayers roughly 75 billion. 

Here is a great article that further explains the pitfall of HAMP.  From out experience with Saint Louis short sales, we have dealt with more than one client who attempted the HAMP program only to be denied.  The result of their denial caused them to decide the better solution was a short sale.  One client in particular was still in the HAMP program when we began our short sale process.  This short sale began in late August.  We followed that up by sending in a letter from the homeowner wanting to cancel the HAMP program in late September.  It took the lender eight weeks to finally get the HAMP program canceled.  While a great solution for you the homeowner is to get a loan modified and keep your house, in many cases this is not a realistic option. 

The government’s original plan to help the masses has proven to be more of a headache than a solution.  If you live in Saint Louis, and are in need of expert short sale advice or foreclosure prevention services, contact your local Saint Louis short sale experts.

This blog post was written by Ryan Wessels, and the original url is found at St. Louis’s short sale expert website.  The short sale expert websites last blog entry was about short sale changes that are underway.

Tags: Foreclosure Prevention, HAMP, home affordable modification program, Saint Louis short sale experts, saint louis short sales, short sales, st louis short sales

This entry was posted on Wednesday, January 13th, 2010 at 5:26 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.