Almost twice as many people dropped out of the government’s mortgage loan modification program in June as those who received permanent modifications, according to the Treasury Department.
There were 91,000 dropouts in June, which means that 530,000 homeowners have left the mortgage program without a permanent loan modification, reported Reuters. Only 49,000 borrowers received permanent mortgage modifications, for a total of 389,000.
The Home Affordable Modification Program (HAMP) has been criticized for not helping enough homeowners who are at risk of foreclosure. The Department of Housing and Urban Development (HUD) and the Treasury Department released the Obama administration’s July housing scorecard this week and acknowledged the challenges with helping homeowners.
HUD Assistant Secretary Raphael Bostic said in a statement: “The housing market is performing better than the predictions made over a year ago. We’re absolutely not claiming victory, but due to the Obama Administration’s efforts, improved home affordability is continuing to provide opportunities for prospective, qualified, home buyers, while promising neighborhood stabilization efforts are helping hard hit neighborhoods start to recover.”
The housing market is still struggling to recover and the numbers could mean that more foreclosures are on the horizon. If you find yourself struggling to hold on to your home, talk with a housing counselor as soon as possible to discuss your situation. Like many Americans you may not qualify for a permanent mortgage loan modification, but there may be other options that can help your situation.
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