Watchdog Group Criticizes HAMP

March 24, 2010 - New York, N.Y. - An increasing number of homeowners have attested that the White House's loan modification program that was supposed to help struggling homeowners prevent foreclosure has not been entirely successful. Some watchdog groups are now openly criticizing it.

CNNMoney.com reports that officials from the Troubled Asset Relief Program (TARP) said the federal program, Home Affordable Modification Program (HAMP), set goals that were simply unreachable. They also allege that the program was mismanaged from the start, and that many homeowners who participated may lose their homes anyway.

So far, HAMP has helped about 1.5 million people in the effort to prevent foreclosure. This is about half of the number that President Obama claimed it would assist when he first announced the plan in February 2009.

Some HAMP officials have tried to back-pedal, claiming the original number referred to those who would enroll in the trial period. Others question this, saying the temporary loan modifications would likely not help homeowners keep their property anyway.

Many lenders have decided to allow fewer people than anticipated to have the permanent loan modifications, even after homeowners complete the required 3-month-trial-period while making their lower payments on time.

HAMP may have been intended as a starting point to help homeowners prevent foreclosure, but it has simply not had the success predicted by its creators. Therefore, many struggling homeowners are frustrated, and have begun looking for payment assistance elsewhere. This is especially true for homeowners that have cooperated with their lenders, only to experience wrongful foreclosure.

The Massachusetts wrongful foreclosure attorneys at Phillips & Garcia will fight for your rights in your foreclosure case. We are committed to protecting your best interests and your family's home and helping you collect the damages you need and deserve to move on with your life. Contact Phillips & Garcia today to schedule your FREE legal consultation - (877) 892-5620.