Home Loan Modifications via Government’s “Prevent Foreclosure” Program Go Up, But Will It Help Stem the Tide of Foreclosures?

In today’s financial publication, MarketWatch.com, it was reported that home loan modifications via the government’s “prevent foreclosure” program, HAMP, helped to keep many homeowners out of foreclosure.

But considering the post we did here yesterday on HAMP’s efforts in this area (home loan modification), one has to wonder:

How long will these homeowners who got their loans modified via HAMP be able to stay in their homes?

Today’s Report on Home Loan Modifications via HAMP

Following are some fast stats from the MarketWatch.com article, Modifications rise sharply on some mortgage loans.

Home loan modifications tripled in the first quarter of this year, compared to the fourth quarter of last year.

Loans 60 days late or more fell for the first time in two years.

2/3 of home loans modifed in the 4th quarter of last year reduced homeowners’ monthly paymens by more than 20 percent.

Over 6 million homeowners are still in the foreclosure process, or about to go into it (ie, are delinquent).

And it’s this last stat that’s worrisome, especially in light of yesterday’s post, in which we discussed that housing experts predict that up to 75% of those who have had their home loans modified will default at some point in the future. This is because most homeowners are burdened with debt.

And with the economy being what many economic experts call a “jobless recovery,” it doesn’t bode well for many.

Of course, the housing market will recover . . . as will the job market. But, how many more have to lose their homes before it happens?

Only time will tell.

Read the full MarketWatch.com article on how HAMP and it’s home loan modification ”success”.

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Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author