The Home Affordable Modification Program (HAMP) expires on December 31, 2016. HAMP was a part of the Making Home Affordable (MHA) program started under President Obama. From a modest 19 page original set of guidelines HAMP grew to over 200 pages. While HAMP had many benefits, homeowners who were wrongfully denied modifications had no recourse. HAMP will be gone, what now?
There is a general consensus that banks and servicers will continue doing modifications. The theory of a modification is that a lending institution can get greater return on its investments if the loan is modified than if the property is lost to foreclosure. If the lending institution can get a greater return through foreclosure, then they will foreclose. This was the basic HAMP theory and nothing has happened to change this proposition.
I personally believe that no one really knows what will happen. We have a new president. President-Elect Trump has promised to lower taxes, give us a better economy and more jobs. What does one do? In my opinion, the answer for now is to go back to the basics, see what plays out, and follow the Ten Commandments of Foreclosure.