HAMP, a government loan modification program created to prevent foreclosures, has provided about 1.2 million modifications to distressed borrowers since its inception in 2009.
Of those borrowers, 306,538 redefaulted after falling behind on their payments by three months, which means in actuality, 865,100 are still actively in the program, the taxpayer watchdog agency revealed.
Of the redefaulters, 22 percent have entered into the foreclosure process.
On the other hand, homeowners who received modifications in early 2013 have a redefault rate of less than 1 percent.
The report also found states with a smaller numbers of HAMP borrowers tended to have higher redefault rates. Mississippi, which has provided just over 4,500 HAMP modifications, has a redefault rate of 35 percent, the highest out of any other state.
Based on region, Western states averaged the lowest default rate of 21 percent and had the highest number of permanent modifications as group.
The report also found states with a smaller numbers of HAMP borrowers tended to have higher redefault rates. Mississippi, which has provided just over 4,500 HAMP modifications, has a redefault rate of 35 percent, the highest out of any other state.
Based on region, Western states averaged the lowest default rate of 21 percent and had the highest number of permanent modifications as group.
Source: DSNews 07/24/2013
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