A new report by Fitch Ratings states that 75% of HAMP loan modifications will redefault in the future.
The issue is that the HAMP (Home Affordability Modification Program) loan modifications do not address the other debt that the borrowers have, therefore still having issues, despite their mortgage amounts and payments being reduced.
CNNMoney.com shared this report and found that this is not an unusual rate on re-defaults.
What lenders recommend at the point of re-default is related to the HAMP loan modification program’s sister program, HAFA program, which helps distressed homeowners try to avoid foreclosure with alternative routes.
If you are in a distressed situation, or would like more information on either HAMP or HAFA, please contact me today to avoid Baltimore foreclosure.