It was intentionally designed to produce lots of pretty colored candy in the form of “Hopium” but never actual results. HAMP and its pals never came with any sort of teeth in the form of actual punishment for non-compliance by the financial industry, and thus we have seen lots of things like this:
Homeowners being told not to pay – on purpose – so as to “qualify” for help. They are then denied a modification.
Homeowners who are put on trial plans but then send documents two, three, four or more times – with certified mail return receipts – and their servicers claim they “lost” them. Never mind that the homeowner has signature proof they were delivered. There is then no legal enforcement of that receipt – even though under virtually every form of legal agreement known to man a return receipt is proof of notice being received.
Homeowners who are strung along for months on “trials” and then denied a permanent modification. When the denial is rendered the entirety of the difference between the original payment and the trial is immediately due and payable, plus late fees and penalties for not making the original payments! This happens even though the homeowner is paying as directed on the trial modification.
Homeowners who are foreclosed on while on trials that allegedly are intended to “save their homes.”
If true modifications – that is, real help – were the point of this entire exercise, rather than jerking people off and milking them for even more money when they can’t pay, these actions would have exposed the servicers involved to severe financial penalties.