HAMP only helped a quarter of homeowners seeking mortgage relief
February 28th, 2011
- Reverse Mortgages and Changes in HAMP
- Reverse Mortgages Versus Short Sales
- Short sale vs. reverse mortgage
- Reverse & HECM Mortgages — New Tax Relief From Congress
- Reverse Mortgage Straw Buyers Among Top Mortgage Scams
The government’s Home Affordable Modification Program (HAMP) has only helped about a quarter of the 2.7 million homeowners who sought mortgage relief, according to a Wall Street Journal analysis of data from the U.S. Treasury Department. The other homeowners who applied for help with mortgage payments either did not qualify for assistance or were disqualified after being accepted into the program.
Is HAMP a waste of money?
The HAMP program has been widely criticized for failing to help stem the tide of foreclosures across the U.S. There are various reasons so many people have not been able to get mortgage relief through the program, but some legislators say the program is a waste of money and should end. If you’ve had no luck getting help through the program there may be other options available that can put an end to the struggle to make mortgage payments.
If you are at least 62 and have some equity in your home, you may be able to arrange a reverse mortgage. Getting a reverse loan allows you to convert some home equity to cash and get rid of monthly mortgage payments. However, a lack of home equity means you won’t qualify for a reverse home mortgage and will have to look for another way out of your loan.
Sell your house
Maybe you planned to live in your home for the rest of your life but things have gotten to the point where you need to sell. If you are underwater on a mortgage, you may be able to arrange a short sale. Your mortgage lender would have to agree to let you sell for less than what you owe on the mortgage and forgive part of the debt. There is no guarantee your lender will agree to a short sale, and if it does be prepared for a process that can stretch out for many months.
Talk with a housing counselor to learn more about reverse mortgage guidelines and other programs that might be able to help you get out of a troubled home loan.