HAMP is a scam

The Obama administration’s Home Affordable Modification Program has been touted as a savor of distressed homeowners across America. The problem is that the numbers show an entirely different story.

More than 650,994 loan revisions had been started through the Obama administration’s Home Affordable Modification Program as of last month, from about 487,081 as of September, according to the Treasury. None of the trial modifications through October had been converted to permanent repayment plans, the Treasury data showed.

None? NONE! Not a single one! WTF!
Five months and 651,000 trial modifications and not one single borrower can get a permanent break? We throw hundreds of billions of dollars at these TARP banks and they can't cut a single distressed homeowner some slack?

These "trial" modifications only last 90 days, so its not like there hasn't been thousands of mortgage holders who have tried to turn it around, and the banks then rejected.

Robert Davis, executive vice president of the American Bankers Association in Washington, said yesterday that unemployment is “the primary driver of defaults right now.” He said he was “puzzled” by the stepped-up pressure.
One purpose of the trial period “is to protect the taxpayer by making sure these loan modifications will work before anything is paid out to the lender,” Davis said. “Suddenly, for that to become a measure of bad performance when institutions are doing everything they can, is just baffling.”

Just baffling that anyone would expect anything in return from the banks after we saved your asses from joining us on the unemployment line.

The problem with HAMP is that it doesn't require anything from the banks other than the appearance of making an effort.

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While the HAMP program has managed to slow down the foreclosure crisis, it hasn't done a thing to stop it. HAMP, and various state moratoriums on foreclosures, are merely pushing the foreclosures crisis down the road a little.
Hundreds of thousands of people are living in their homes for as long as a year without being foreclosed on. While that is good in the short-term, the chances of these people not being eventually foreclosed on is zero.

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The next implosion that will soon hit the housing market is the Option-ARM problem.
According to a recent report by Standard and Poors, 93% of all Option-ARM mortgage borrowers elected for minimum payments. These minimum payments were negative amortization, thus not even covering the interest payments on their mortgages.

Nearly all of the 350,000 option-ARM borrowers owe more than when they first bought their homes thanks to the unpaid interest accumulating. And many loans written during the first big wave, which started in 2004, are getting ready for their five-year reset, when they become standard amortizing loans. Additionally, some newer loans will reset early if the accumulated interest has pushed the loan-to-value ratio above 110% to 125%.

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The recasting of these mortgages are going to dramatically raise payments on hundreds of thousands of homes that are heavily underwater.
Let's say you have an 30-year Option-ARM loan with five years of negative-amortization payments on the front end. After the five years is up your mortgage not only adjusts to a fully amortizing loan on a much larger mortgage, but also to one that now must be paid off in 25 years rather than 30 years.
78% of all Option-ARM mortgages haven't recast yet.
Homes that are so deeply underwater are not eligible for even HAMP.

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Another problem with these Option-ARM mortgages are that so many of them are stated-income loans made during the housing bubble. Stated-income loans are now being called "liars loans".

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I know I am sounding like a broken record but WTF?

HAMP was an excuse to make it look like the Obama Administration was doing something about the problem. Again, we must address the negative equity issue that has been ignored over and over again in this crisis. It won't go away until drastic measures are taken which mean that YES Wall Street and the mortgage industry has to incur some PAIN.

Yes it means - reduction in principal or DEBT FORGIVENESS. Many of these loan should not have been made in the first place. So, fu*k the mortgage industry and start issuing the haircuts.

RebelCapitalist.com - Financial Information for the Rest of Us.

offtopic, create an audio signature

Create an audio signature, embedded, that just says over and over again, what the f@#k that that old LP scratch sound.

I hear ya, I think I think that a good 10 times a day.

Recall their program HOPE is hopeless.

I didn't even know there is a new 4 letter mnuemonic.

I thought midtowng was posting something about hemp! ;)

Or maybe a new listing on the NASDAQ or penny stocks.


I had forgotten about HOPE. Without a cramdown all these efforts are just for show.

HAMP was not Obama's fault

The HAMP program was put out to help people by the people for the people in an attempt to save face in a scandaled housing market. With that said it was not intended for the "Banks" to use as they seen fit to pad their wallets by creating a paper trail that made it appear like they helped someone and then eventually screw the already screwed homeowner further by foreclosing anyways.

HAMP money + Foreclosure with short sale on court steps + 1099c sent to the screwed over homeowner = PROFIT far beyond the houses true value.

Don't blame the president for something the banks did, blame the banks for what they did...They screwed you out of hard earned tax payers dollars to repair a situation they created and then screamed loudly "BAIL US OUT!"...it was not intended to be abused, but they sure do continue to abuse it or should I say rape and pilage it to death.

However, we can agree on one thing without argument...STOP THE HAMP program and put the money to better use such as JOB CREATION so people will eventually be able to REALLY recover and maybe, one day, afford a home for real.

I'll blame the President

I'll blame him for Timothy Geithner, for Ben Bernanke, for Larry Summers, for Diane Farrell, for giving a speech touting lobbyists B.S. on foreign workers, for Christina Romer with multipliers that are not valid, ignoring the fact one must keep funds domestic in order for a multiplier to hold....

the list goes on and on how he put at the top of his administration, glorified global labor arbitrage, corporate front people and didn't even bother to listen to real experts and go from there. Even Volcker was completely compromised.

How about HUMP

Suggested program: Hope for Undoing Mortgage Predators (HUMP). Reprice mortgages based on mark-to-market and recasting to true value of homes, with rates adjusted to reflect cost of capital for banks. The Banks do not have clean hands here, and they should have to eat some of this s**t sandwich they helped make. Yes, I know it is just a dream, but so was the banksters' view of the American consumer.


The best solutions are sometimes the simplest. Hang the bankers, bulldoze the houses and start over.


I think the trial payments are very misleading to say the least. I do understand why people call it a scam and in some scenarios i do agree with it. The issue that concerns me is when a homeowners is automatically put on a trial payment for 31% of his/her income and that payment is so low that it makes the homeowner feel overjoyed but in reality to obtain that payment the interest rate would have to be -2.5% yes negative 2.5%. I see this all the time working for a HUD APPROVED COUNSELING AGENCY in Brooklyn NY.

What about reduction in principal?

Or is typically messing with interest rate and term?

RebelCapitalist.com - Financial Information for the Rest of Us.

Interest Rate- Negative 2.5?

Hi im 18 and my dad hired a lawyer to file the paperwork for the HAMP program and i kinda have a bad feeling about this? Does my dad really need a lawyer? and from what i understand is that the HAMP program offers a misleading "trial payment plan" based upon 31% of my dads income? What I did not get was the negative interest rate that you mentioned? please help me out here...

NFC Group

Does anyone know anything about the NFC Group?Are they legit,or another scam?

NFC group

I've never heard of them but looked it up in Google and the site appears to be one of those predators claiming to help people in financial trouble.

This group, NACA is supposed to be legitimate but always, always get out your magnifying glass and read all fine print and understand the fine print when dealing with a large loan such as a mortgage.

Wells Fargo HAMP Fraud

Wells Fargo (in particular, yet among others) are luring home owners into the HAMP program to take advantage of government stimulus money, after the initial 3 month trial period they deceive the homeowner by telling them to continue their modified payments when in fact the mortgage payment has been set back at it's original payment in their system. They are tacking increasingly potent fee's onto the original loan amount. The more the loan is the more tax credit they get from the government as well as compensation for their "loss". They sell these homes at a fraction of their worth in auction/foreclosure and are paid the remainder by the government.

* Join us on Facebook: People Against HAMP

We are in contact with an Associated Press writer, please contact us if you have gone through this situation with Wells Fargo or any other bank as well. smoorgie@hotmail.com

Whew, gotta give a girl a chance Mr. Fargo

Wells Fargo is beyond despicable. Not only did I fail to be modified upon numbers that were incorrect and it is amazing to say that out loud since you are required to send, send again, send yet again, did I mention send your information over and over and over but they neglected to mention that failed eligibilityto me. I only called them once a week for a year, sent them a tree's worth of documentation,carefully signed in blood and you would think their only job in this process is to inform me of the modification results. I only called them once a week for over a year and a half. Guess they couldn't contact me. Huh.
Well I found out I failed Hamp due to a failed NPV which indicated
false income (I am bolding saying false since I refer back to an earlier passage about mine sending and sending and sending stuff)
Seriously with the amount of documented information how can they blow the numbers unless it is intentional. Then to add serious insult, serious because now I am more likely to lose my home than the pre mod period because I was current then with no thirty days late. I was a good citizen. No more. Then the final question is why didn't they tell me back on January 27 that I had failed. Why were the efforts of a rep that actually read the notes on my account the sole reason I knew I failed, oh that was on May 19.
I would call once and week and started that conversation the same way, any word on my modification, same ol answer, it is still under review. P.S. Today is June 16, wanna guess what they said
tonight when I called. Gotta love it. There are Class Action Suits starting up. I chose two and am recommending contacting EdelsonMcGuire, LLC at Edelson.com and search Lori Wigod v. Wells Fargo, NA

across the board

Whew, that sounds very familiar cause it's the exact same thing i've gone through, and then after 11 months of trial payments,(not by my choice) they tell me they want 15k in back payments by next month WTF on an already underwater home...lol they need to open that class action to other lenders also cause my loan is with citimortgage and they must have been planning all this together because it's identical situations, npv first they told me i made too much, then too little, then the value of property/loan and i called them out on all of it. then found on their website i think by mistake the numbers plugged in and i don't know where they got their figures but it was nothing near what i supplied them, so no wonders i was denied, but seems kinda convenient that happens and now if i do get approved i get 15k + attached to my loan. They're working it out to their benefit. And they wonder why people (good people) are walking, couldn't be because they were trying to be proactive, and lied to having been told that this would Not affect credit(considering i was supposedly put in for HARP just to refi)but now left with a burden that isn't worth the hassle. something needs to be done or there will be a bigger mess than they expect, and everyone will pay!

Creditor Torts - Re Mr. Fargo

Most folks do not understand that creditors have rights, not just under Fair Credit Reporting, but common law. When creditors fail due diligence, they commit a tort, a civil wrong doing. My personal attitude is to smack the thieving banksters around.

Don't even think about court, it is just too slow. Start with a complaint to the Comptroller of the Currency since Fargo is a national bank. The CoC website has complaint form and bureaucracy can be prodded to act. It works.

Burton Leed

HAMP is a farce

I am now to date submitting my paperwork for the 5th time...can anyone say "DEED IN LEU"??? I am so wore out from this stupid process and feel that the only true answer to the issue is to "Stop the bleeding" by cutting all these predatory lenders off of a program that is only serving to pad their wallets.

They state that it has helped 10% of the population but I know that, that number was plucked out of their @55 and is more likely to be 2% at best.

The banks love HAMP it helps their predatory @5535 out of a bind that their creative paperwork got them into in the first place.

I say to all those that are being lied to and told that they will be looked after by the HAMP program should come to a realization of truth...There is no help there is only the truth of eventuallity and it must be faced and I say "BANCRUPTCY" and stuff my house where a monkey shoves his nuts...

Thank-You! Bank 'O' Americano for helping me understand that the acronym for HAMP actually means Happily Accepted Money & Profit...Let the houses rot! and become fertilizer in their miserable hands...I no longer care!