More troubled homeowners have fallen out of trial mortgage modifications than have received long-term help, a new government report released Monday shows.
But nearly half of these borrowers received alternate help, while only 7% have fallen into foreclosure, according to the latest report on the administration’s signature housing-rescue plan, Home Affordable Modification Program, known as HAMP.
Also, trying to bolster the perception of its overall housing rescue efforts, the Obama administration separately debuted a so-called housing scorecard on Monday, which provided various statistics about the market’s performance over the past two years.
The HAMP initiative saw a surge of people leave the initiative in May. More than 152,000 have had their trial adjustments cancelled since the program started, mainly because they could not document their income or because they earned too much to qualify for assistance, officials said.
Nearly 430,000 borrowers have had their trials cancelled — more than one-third of the total started. Servicers place troubled borrowers in trial modifications for several months to verify their income and see whether they can make the lowered payments. More than 70% of the those cancelled this month had been in trial for at least six months.
However, 48.9% of those who had their trials cancelled received…
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