For the first time since it was launched six months ago, the Administration’s Home Affordable Modification Program (HAMP) is having a measurable impact on the rate of foreclosure filings in California, according to the latest report from ForeclosureRadar, a web site that tracks foreclosures California and four other Western states.
Foreclosure filings dropped both month-over-month and year-over-year in California last month, while the inventory of properties scheduled for foreclosure sale continued to grow, and foreclosure sales were flat.
However, 7.5 percent fewer foreclosure sales were cancelled in August than July and there are no signs yet that foreclosures are being cancelled due to the HAMP program.
Through August 2009, some 360,165 trial modifications had been started under the HAMP programs. Trials take a period of three months while homeowners see if they can remain current on payments under modified terms.
“It is clear at this point, that foreclosures are being HAMPered,” says Sean O’Toole, founder and CEO of ForeclosureRadar. “Where foreclosures head from here will depend a lot on the administration’s Home Affordable Modification Program, commonly referred to as HAMP. We can clearly see that this program is postponing an awful lot of foreclosures, but don’t expect a wave of foreclosures if it fails, instead expect further government intervention.”
For a copy of the ForeclosureRadar report, click on the link above.