More foreclosures for failed HAMP participants

Recent real estate records from the Treasury Department indicate that mortgage servicers put a greater number of borrowers who entered the Home Affordable Modification Program into foreclosure during 2011 than they did in 2010.

Recent real estate records from the Treasury Department indicate that mortgage servicers put a greater number of borrowers who entered the Home Affordable Modification Program into foreclosure during 2011 than they did in 2010.

According to the report, by the end of November 2011, more than 10 percent of the approximated 615,000 canceled HAMP trials ended in foreclosure. This is more than double the rate seen during the same time period in 2010, when only 4.4 percent of borrowers ended with foreclosed houses.

Meanwhile, the number of borrowers who opted for alternative modifications on their home loans also dropped. Out of all the canceled trials, 39.7 percent of borrowers went through their lender's own private program seeking a loan modification - a marked decreased from 2010 when 45.4 percent selected this option.

Additionally, the number of foreclosures completed on homeowners who were not accepted into HAMP trials also rose. The report showed that of the 1.8 million borrowers rejected, 7.6 percent went through the foreclosure process, while only 5 percent ended with the same result during the previous year.



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