64,393 HAMP failures resolved with short sales, deeds-in-lieu
Some 64,393 mortgages that failed the Home Affordable Modification Program trial period ended up as short sales or deeds-in-lieu of foreclosure, according to August numbers provided by the Treasury Department.
Through August, the top-eight HAMP servicers have canceled more than 487,000 trials and rejected more than 628,000. When taken as a percentage short sales and DILs were granted on 5.8% of them.
In contrast those servicers offered alternative modifications through its private programs on 37.2% of those and started foreclosures on 11.6%. Servicers have yet to take action on 19.6% of those loans.
In April, the Treasury kicked off the Home Affordable Foreclosure Alternatives program for servicers to provide short sales or deeds-in-lieu of foreclosure for loans that could not make it through the HAMP process to a permanent modification. With foreclosure starts and alternative modifications outnumbering short sales and DILs, it's a sign that HAFA could be just as disappointing as HAMP.
The top-eight servicers include Bank of America ($13.46 -0.05%), Wells Fargo ($40.65 0.45%), JPMorgan Chase ($52.89 0.6%), Citigroup ($51.79 0.19%), Ally Financial ($25.66 0.04%), Litton Loan Servicing, OneWest Bank, and American Home Mortgage Servicing.
BofA leads those servicers with more than 37,000 short sales and DILs. Wells Fargo is second with more than 7,000. Both BofA and JPMorgan Chase have recently frozen their foreclosure processes in light of the robo-signer debacle.
The Treasury will release its official HAFA report sometime this fall.
Write to Jon Prior.
The author holds no relevant investments.
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