(Adds November dropout figure, background)
WASHINGTON (Reuters) - The U.S. Treasury Department
said on Wednesday that about 30,000 homeowners facing
foreclosure got permanent help in November through a loan
modification program that should help them keep their homes, an
increase from 23,750 in October.
The homeowners received a permanent modification to their
mortgage payment as opposed to a temporary new payment, which
requires more paperwork to be made permanent.
About 18,000 borrowers dropped out of the Obama
administration's premier foreclosure prevention program, called
the Home Affordable Mortgage Program, or HAMP, in November,
bringing the total since its inception to about 774,000.
About 1.46 million delinquent borrowers were eligible for
help under the program.
Treasury said there were about 505,000 borrowers at the end
of November who had active permanent loan modifications in
place, up from 483,000 in October.
That is well short of the administration's early goal of
helping 3 million to 4 million homeowners, an aim that has
since been scaled back.
Treasury launched HAMP to try to find a way to reduce
mortgage payments for struggling homeowners who wanted to keep
their homes but who were at imminent risk of foreclosure.
But it is widely regarded as a flawed program, and the
incoming Republican chairman of the House Oversight and
Government Reform Committee, Representative Darrell Issa, has
called for an end to the program.
The U.S. housing market continues to struggle as high
unemployment and tight lending standards hamper recovery.
Data on Wednesday from the National Association of Realtors
showed about one-third of all sales of previously owned homes
are so-called distressed sales, which includes both
foreclosures and sales of homes where the bank agrees to take
less than what is owed.
(Reporting by Glenn Somerville and Corbett B. Daly; Editing by
Kenneth Barry)
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