The Obama administration's Home Affordable Modification Program (HAMP) has made homeowners in dire straits. A lot of borrowers who are in the test period of the scheme are forced to drain their savings hoping that they'll get an end-to-end modification. In the majority of cases, the permanent changes they wish for will never come to pass.

When the program was first introduced in the beginning, borrowers knew the eligibility criteria and would be able to get an permanent modification to their home mortgage in four months, on average. Today, due to the growing demands from the government to increase the amount of loan modification and loan modifications, the length of time required to settle problems with loan modifications for borrowers has almost tripled. It's a result of doubling the amount that borrowers use from savings, which can be used to find a new home if banks refuse the mortgage modifications.

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The lenders are refusing to lend money because of a variety of reasons. Banks can deny them not paying their bills during the trial modification procedure. Many times, borrowers are denied due to not providing the proper financial documents necessary for modification of their mortgage. The reason for this is because the owner of the mortgage doesn't participate in the Home Affordable Modification program.

The information published from the Treasury Department during the middle of May 2010 shows us that close to 25% of homeowners who received modifications under HAMP were found to be not eligible or had their loan modifications cancelled.

Of the 17,000 million delinquent borrowers who are eligible to participate in the program across the United States, only 1.2 million have ever signed up for the trial modification. This leaves just 30% of the eligible borrower across the United States that have not registered to trial modifications.

Of the 1.2 million who have been signed up for a trial modification 23 percent or 277 640 have been canceled or discovered to be ineligible. 25 percent, or 299,092 of those 1.2 million were converted to permanent modification of loans. 3,744, which is just over one percent of these loans that have been converted to permanent modifications have been canceled. This leaves 295,348 permanent loan modifications still in force at the close of April 2010.

More than 50% of these test modifications (623,268) are likely to be removed or changed into permanent changes. Recent data suggest that the chance of each of the possibilities is about 50-50. About half of them are likely to be removed, and the remaining half are likely to receive some kind permanent change.

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