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Sacramento Short Sale Specialist Reports Less Than 9% of Sacramento Area Hamp Mod’s Successful!

 

 

Sacramento HAMP loan modifications failing miserably!

Sacramento Certified Short Sale Specialist Reports 91% of  Local HAMP Loan Mods Are Failing!

Just came across the latest HAMP loan modification statistics  it shows that nationwide, less than 8% of all HAMP loan modifications have been approved for a long term solution for homeowners nationwide and that less than 2% of all Long Term Modifications have any type of principle reduction. I wondered if there was any such statistics for the Sacramento area… then  I stumbled upon a great report from the Making Home Affordable/ HAMP website:   

 

Sacramento Area HAMP loan modifications are saving less than 9% of underwater Homes

Sacramento Area HAMP loan modifications are saving less than 9% of underwater Homes

 

 

 

It shows that there have been 13,004 Sacramento Area HAMP Loan Modifications started and only 1,156  permanent modifications- less than 9%.

 Why? because many times, the permanent modification offer from the servicer is  a joke. I have talked to many, many struggling Sacramento homeowners have fought with servicers, hung in there for months of agonizing, calling, faxing, emailing and waiting on hold in order to be included in the trial period.  They went through all this in order to save their home.

Then after all that, and after making 90 days of on time trial payments, and following their lenders instructions to the letter, they at last get a long term modification offer. I have not found one homeowner who was happy with the offer.  Every single time, the long term modification offer had no principle reduction, an extension in the terms to 40 or 45 years and a reduction in interest locked for only five years.  The interest rate usually is reduced to 2, 3 or 4% for five years and then adjusts to the current rate.  So that means that after 5 years, the homeowner would be back in the same situation they are now! Still thousands of dollars upside-down and facing a huge jump in payments! Another time bomb!

Most of these people are now my Short Sale Clients! 

HAMP Activity by Metropolitan Statistical Area As of December 2009

If you scroll down to Sacramento:

Statistical Area:                                             Active Trials          Perm.  Mod.’s           Total HAMP          % of all HAMP

Sacramento-Arden-

Arcade-Roseville, CA                                           11,848                         1,156                        13,004                          1.52%

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