We are hearing a lot about the low interest rates and what a great time it is to purchase a house or refinance your current mortgage. But what’s happening with HAMP (Home Affordable Modification Program) and all the people who were – and still are – struggling to pay their mortgages?

According to SimplyModify.org, 1.3 million homeowners started the payment trials and nearly half (616,800) have dropped out or were cancelled since the start of the program in the Spring of 2009. Most of these removals were due to insufficient documentation, missed payments or their mortgage payments were already less than 31% of income. The HAMP initiative was created to reduce the mortgage payments to 31% of income, so this one statistic would immediately remove you from the program.

Some interesting statistics regarding the program are reported by SimplyModify.org. “HAMP servicers have approved 434,700 permanent modifications and 421,800 are still active as of July 31.

“In the June report, Treasury provided HAMP re-default data for the first time. But within a week the promising data had to be corrected. Unfortunately, this information is very bleak.

“The corrected June data showed the re-default rate (loans 90-days or more past due) on HAMP modifications completed in the third quarter of 2009 is 9.7% after six months, not 2.3% as originally reported. After nine months, the HAMP re-default rate is 14.9%.”

Let’s hope those who need help will continue to qualify and receive the assistance they need.