President Obama’s HAMP program was designed to help millions of struggling homeowner’s, but it has become obvious to nearly everyone that the program has not worked. Originally, the intent of the program was to modify the terms of millions of mortgages so that struggling homeowner’s would be able to make monthly payments and keep their homes. In reality, few homeowner’s actually qualified for the program, those that did found the application process to be too hard, and those that made it through the application process did not really benefit from the program.
The requirements for HAMP are constantly changing, but they generally required a homeowner to show that he or she was unable to afford his or her payments due to a change in financial circumstances. A lot of the homeowner’s in this country, however, couldn’t meet the strict standards of this requirement. For example, people who were able to keep their jobs but now have to pay twice what they were paying when they bought their home for healthcare premiums were unable to qualify.
Even people who did qualify soon found out that their bank had no idea how to handle their application. There were thousands of reports of missing documents, and many applicants got conflicting information from multiple bank representatives.
The homeowner’s who did make it through the process were often extremely disappointed in the help that they received. Many modifications only cut payments by a few dollars each month. Some people received new payment amounts that were actually higher than their old mortgage payment. Ultimately, many people going through this program lost their homes anyway.