Private load modifications are growing as 75% of home owners that have entered the HAMP program have dropped out. Very few home owners that applied were able to qualify for HAMP and 45% of HAMP dropouts are getting private loan mods. Now it seems according the article that 22% of the home owners getting private loan mods are now re-defaulting.
Nearly 11% of mortgages modified under the government's Home Affordable Modification Program, known as HAMP, have fallen two months behind in payments, according to a banking regulators' report issued Friday. By contrast, just more than 22% of non-HAMP adjustments redefaulted.
That 11% is misleading number, since it's doesn't include home owners that were qualified but dropped out of the program. I got my 75% drop out rate from the calculated risk website for the August HAMP report.. Basically, these private loan mods only slowed homes hitting the market, it will not stop them.