The Treasury Department released a new report on the government’s foreclosure prevention efforts Friday.
Treasury reports that as of the end of February, 4,488 homeowners completed a short sale or deed-in-lieu under the Home Affordable Foreclosure Alternatives (HAFA) program. The federal program provides up to $3,000 for relocation assistance after a homeowner exits the home.
Another 10,177 homeowners have agreements in place with their servicers for HAFA short sale transactions. Treasury notes in its report that the HAFA short sale timeline “lasts at least 120 days,” and requires the cooperation of junior lien holders in order to complete the transaction.
In addition, Treasury reported that 26,147 homeowners were put into permanent first-lien HAMP mods during the month of February, bringing the total number of active permanent modification under the program to just over 557,000.
The number of borrowers who have fallen out of the program stands out in the Treasury’s list of program stats. Since HAMP began in early 2009, over 1.5 million trial modifications have been initiated. More than 746,000 trials were canceled, and 76,600 mods have been cancelled after they were made permanent, for a fall-out rate of more than 50 percent.
