Industry NewsMarkets & Economy

HAMP redefaults approaching 50%

Administration's 'Housing Scorecard' sees price stabilization as a positive

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Nearly half of the 1.3 million homeowners who have accepted loan modifications under the Home Affordable Modification Program have washed out of the program, according to the latest report from the Treasury Department.At the end of July, there were 421,804 homeowners enrolled in permanent HAMP loan modifications, and another 255,934 borrowers in active trial loan modifications.All told, a total of 677,738 homeowners were in permanent or trial HAMP modifications. But almost as many borrowers had already washed out of the program -- 629,751.Many analysts expect that more than half of HAMP loan mods will end up redefaulting. With fewer homeowners entering the HAMP pipeline -- only 24,577 new trial modifications were reported in July -- it's considered unlikely that the program will meet its initial goal of helping up to 3 million borrowers avoid foreclosure.In releasing its "Housing Scorecard" for August, the Obama administration nevertheless offered a positive outlook on the ov...