Mortgage Analysts See HAMP Not Slowing St Louis Refinancing Foreclosures

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With the huge number of reported failures of the federal program known as HAMP, inside senior legislators appear to be jumping on the band wagon displaying their new found pessimistic ideas on where this plan may be headed.

There were memos recently exchanged among one instrumental senator and Neil Barofsky, special inspector general for the Troubled Assets Relief Program (TARP), on the matter of HAMP with Barofsky stating that over one-and-a-half million or so consumers would get any type of mortgage aid.

But the pressing headlines is that nearly 4 million Americans including St Louis home loan owners that actually require this federal assistance. Yet, most experts are despondent at the reality of this amount being achieved.

The reason for this dismal outlook is that less than 200000 or five percent have actually moved forward from the trial plan into a permanent modification state.

But if matters couldn't be worse, the inspector general's release warned that many consumers are at jeopardy of re-defaulting on their St Louis mortgage loans even after acquiring help under the federal plan.

Again the critics are coming out of the wood works suggesting that these consumers are irresponsible. But the truth of the matter is, many still owe more money than what their house is worth not mentioning that others have second mortgages.

Without wandering off to a great degree, I think its fair to mention the abominable acts of not just the huge insurance and banking leviathans but the average person who bought a house they knew they just never afford and did it by taking the only type of loan that could deed them this undeserved asset. Then you have the pure fraudulent actions of those who knowingly lied on their stated income application. Two years later, these acts have come to be known as "liar loans."

Getting back to the facts, Barofsky then reveals his further skepticism basically saying that these loan modifications may not be the right program to continue offering. The Treasury department had other assessments as to the wide spread criticism.

In a long, drawn out comment included in the brief, Herbert Allison, assistant Treasury secretary for financial stability said the plan "should be measured by how many eligible consumers are able to avoid the pain and stigma of foreclosure by reducing their mortgage payments to affordable levels while either staying in their homes or transitioning with dignity to more suitable housing. The total sum of permanent modifications is one element, but not the only element of gauging the success."

Whether this federal program meets its overall success or failure is second only to the fact that these main officials want us to view their opinions from their viewpoint and no other.

Allison seems to want everyone to grasp that the important reason is not the failing of HAMP, but that Barofsky is simply not gauging its lack of success in the correct manner.

Since Allison clearly points out that permanent modifications are really only one way to help suffering homeowners, this somehow insinuates that he himself doesn't firmly believe his previous comment.

We cannot ignore the fact that these services are also offering numerous foreclosure prevention initiatives such as short sales as realistic options. It is sad that many of these mortgage owners both nationally and locally can no longer measure up financially for any type of St Louis refinancing options.

Yet, most people who have been following this plan from its inception were spoon fed the amazing concept that permanent loan modifications through HAMP was the best and perhaps the only way the country would see this overwhelming amount of foreclosures go away.

And as we are finding out, countless of these modifications did not include a realistic principal reduction, which means in all likelihood, they will continue to fail.

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