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Here is the latest short sale news at Seattle Short Sales. We assist hundreds of Seattle area homeowners with short selling their home and avoiding foreclosure.

Negotiating it Right: Three Years Later, One Third of HAMP Loan-Mods are Redefaulting

Seattle Short Sales - Saturday, March 15, 2014

Supposedly permanent loan modifications are defaulting at what the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) calls an “alarming rate". The government’s Home Affordable Modification Program claimed that it would help between 3 and 4 million homeowners to avoid foreclosure via loan modifications. However, according to the SIGTARP quarterly report released last week, after four years of HAMP, only 862,279 homeowners are currently in an active permanent mortgage modification.

The low number of total modifications is not the only bad news about HAMP. As of the end of last month, over 312,000 homeowners have redefaulted on their HAMP modification. As SIGTARP notes, “For these homeowners, the HAMP permanent mortgage modification they received was not sustainable.”

The earliest HAMP permanent modifications, those negotiated in the third and fourth quarters of 2009, are defaulting at rates of 46% and 39% respectively. And HAMP modifications negotiated in 2010 are doing little better, redefaulting at rates of between 29% and 38%.

Loan modifications can work for some homeowners who are threatened with foreclosure, provided that they are negotiated properly to ensure that the homeowners will be able continue to afford the new payments. But loan modifications that eventually redefault often cost people their homes: the lost time spent on a modification doomed to fail means that there is no time left to investigate other options, and foreclosure is the result.

Seattle Short Sales has a team of experienced and successful real estate specialists dedicated to working with distressed homeowners. We close, on average, 12% of all short sales per month in King County. In the last 24 months, we have negotiated over 756 short sale approvals, and discounted over $81 million of mortgage debt for distressed homeowners.

In addition to our short sales negotiators, our team includes dedicated professionals advising and advocating for homeowners in the fields of: loan modifications, bankruptcy, debt settlement and collection defense. As part of our service, we offer unlimited attorney and CPA consultations.

If you are a homeowner who is struggling to make ends meet, and would like to learn more about the options available to you, please go to: http://seattleshortsales.com/homeowners/

You can also contact Lambros Politis on Google+ or to find more up to date information on this subject, go to theArk Law Group Blog. 


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