HAMP has officially stopped 1 million loan modifications in the works. 23% of those cancelled loan mods have already re-defaulted and started heading right back into foreclosure. These numbers are expected to dramatically rise as banks continue to speed up the unloading of the shadow inventory backlog.
Additionally, CLS Asset Management points out that “the recent mandate by the administration that Fannie Mae and Freddie Mac discontinue writing down underwater mortgages has paved the way for the initiation of a record number of “strategic default” foreclosures. A documented 1.1 Million homeowners have simply walked away from their homes to avoid heavy IRS penalties scheduled to resume January 1, 2013.”