The Seattle Times picked up an AP story noting that the International Monetary Fund (IMF) has criticized the current HAMP programs in a recent report. These programs were implemented to stem the rash of foreclosures across America.
Fewer than 1 million mortgages have been modified by HAMP, falling short of its goal of 3-4 million.
The report notes that HAMP had limited incentives for lenders and tight eligibility criteria for borrowers. It also says the program has not reduced monthly mortgage payments enough to restore affordability in many cases – only 11 percent of permanent modifications included principal reductions.
Here in Washington, the Foreclosure Fairness Act mediation program is attempting to address the issues. While Washington is facing the same problems as many people facing foreclosure nationwide, the mediation program will try to ensure that homeowners will have a shot at keeping their homes or at least come up with a solution to the issues short of complete financial peril.
If you are faced with foreclosure of your home or are participating in a foreclosure mediation, please contact me for assistance.