HuffPO-
President Barack Obama said in 2009 that a new program to fight foreclosures would help as many as 4 million struggling homeowners obtain mortgage modifications that would reduce their monthly payments.
The administration will not reach that goal, but data released Thursday show that it has achieved a much sadder statistic: More than 1 million homeowners have been bounced out of the program.
The Home Affordable Modification Program (HAMP) offers homeowners reduced monthly mortgage payments if they’re behind or at risk of falling behind on their payments because of reduced income or increased expenses. At their own discretion, banks’ mortgage servicing departments place eligible homeowners in “trial” modifications, which become permanent if borrowers successfully make the reduced payments for three months. The average modification saves homeowners more than $500 per month.