Industry NewsMortgage

Most HAMP failures avoid foreclosure

Many get other loan mod, 'self cure,' or engage in short sale

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

Most homeowners who have been rejected by or dropped out of the Home Affordable Modification Program (HAMP) ended up in an alternative loan modification, became current on their loan, or negotiated a short sale or deed-in-lieu of foreclosure.According to data compiled by the U.S. Treasury Department for the eight largest loan servicers participating in HAMP, less than 15 percent of the more than 1 million borrowers who were rejected or dropped out of the HAMP program had lost their homes or were in foreclosure process at the end of July.Although the HAMP program has been criticized for falling short of its initial goals, Obama administration officials have defended the program, saying it's bought time even for many borrowers who didn't receive permanent loan modifications.Data for all participating HAMP loan servicers through August shows 1.3 million borrowers have been granted HAMP trial loan modifications since the program's inception. Of those, 663,538 have been canceled and 202,521...