Federal Housing Administration Commissioner Dave Stevens reports mortgage servicers have extended approx. 571,000 loan modification offers through August, up from about 400,000 reported through July. About 360,000 modification offers are in a 90-day trial period prior to being made permanent modifications.
These reported figures show the administration’s program to combat rising U.S. home foreclosures is on track to meet it’s goal of modifying more than half a million delinquent mortgages.
Under the government’s Home Affordable Modification Program (HAMP), mortgage companies receive $1,000 for each loan modification completed, and additional moneys for up to 3 years, as long as the borrower stays current. Mortgage Bankers Association data show that first-quarter 2009 delinquency rates among securities backed by multifamily mortgages rose dramatically from the year-ago quarter, Stevens said.
Stevens warns of increasing evidence of “material and growing” challenges in the multifamily mortgage sector that could have negative consequences for tenants. He also indicated the administration was conducting a “high level review” of the housing rescue effort and was also exploring “programmatic options” to ensure signs of stabilization in the housing market are maintained.
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If you think you may benefit, the official Home Affordable Modification Program eligibility questionnaire asks a quick 5 questions, the hilites of which include: Are you in distress?, is the mortgage for less than $729,750 and are the payments more than 31% of your gross income?
The program’s official site also provides a simple Payment Reduction Estimator requiring just your mortgage payment and income to be entered.