Foreclosure Stats Show Homeowners Still Seeking Loan Modifications
Updated: Jan 22
The figures are startling. Even though the Home Affordable Modification Program (HAMP) ends at the end of 2016, mortgage delinquencies increased at the beginning of 2016, and houses going into foreclosure increased by 6%. The number of completed foreclosures increased by 35%.
How is this possible? The economic recovery is measured in different ways. Although the unemployment rate is 5%, which is considered good by most economists, many people have taken lower-paying jobs or simply left the job market. These people are not counted as unemployed. They do, however, still have mortgages.
Loan modifications are ideal for people who have suffered a permanent loss of income. Indeed, one of the criteria used under HAMP, as well as many in-house loan modification programs offered by mortgage servicers, is a loss of income. So long as there is at least some income to pay a reduced mortgage payment, most loan modification programs require that an agreement be provided.
DYE CULIK PC (previously Culik Law PC) is a consumer financial protection law firm located in Boston, MA and Charlotte, NC. We have helped consumers with mortgage loan modifications and foreclosure defense since 2008. Call us if you have a mortgage related issue at 800-704-4214.