The latest data on the HAMP was released this week for the month of March. Although the program is intended to assist 3-4million households keep their homes, 230,000 have so far been permenantly modified. Another 780,000 active trial modifications are in process.
The basics as reported by the Brookings Institute are;
"In order to be eligible, the property must be a primary residence, the mortgage must have been originated on or before January 1, 2009, and the unpaid principal balance on the mortgage must be no greater than $729,750. Also, the debt-to-income ratio for the first mortgage for the borrower must be greater than 31 percent of pretax income.
For eligible borrowers, the mortgage servicer will take steps to adjust the debt-to-income ratio for the first mortgage down to 31 percent of pretax income. The steps include first reducing the interest rate to as low as 2 percent, then extending the loan term to 40 years and, finally—if necessary—deferring a portion of the principal, interest-free, until the loan is paid off. The borrower is given this modification for a three-month trial period, and the modification becomes final after the borrower makes all three trial period payments on time."
More information on the most recent report can be found at:
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