I was looking for something to support my own anecdotal evidence vis-a-vis ARM resets modifications & help under HAMP. From the anecdotal data HAMP is a complete failure.
Last weekend, I was at the BBQ party where 2 friends work for one of the bigger banks (one a VP and other a negotiator). The negotiator, who worked also a RE broker in the boom days, assured my wife that the market will only get uglier next year, or later, whenever the banks will decide what to do w/ the assets of all these unqualified ARM victims (I mean investors).
According to her, in a typical day she processes about 10 cases (specifically assign to the HAMP program to qualify ARM reset victims). A good day equals having max 2 out of 10 cases qualify based on income for HAMP. So, my anecdotal data shows a failure rate of 80% under the HAMP. Based on the other blog articles read lately, CHASE and B of A have an even higher failure amount for ARM recasts victims to qualify under HAMP.
The negotiator’s question was……………….what would banks do with assets when Govt. help programs in place stop? I know the answer is……………….EXTEND THEM (but at some point things will have to be passed back to the private sector)…..the key is WHEN
