According to a forecast published this week by RealtyTrac, foreclosures are expected to rise to 4.5 million by the end of 2010, from 2.8 million in 2009.

Is HAMP the finger in the dike, or a beaver dam hoping to hold back a tsunami?

Here’s Jon Maddux’s take in a posting on housingstorm.com:

Over a year ago, the government launched the home Affordable Modification Program (HAMP) to help nearly 3 to 4 million struggling households modify their mortgages, and stay at home. It’s clear that it has failed by the sheer ridiculous numbers of people it has helped. Approximately 170,000. I’d say they are on track to help about 5% of the people they aimed to help. I think we have a case of GROSSLY over promising and under delivering. In an entire year, they have helped far less than the number of houses receiving default notices every month.

They See The Wave, They Must Do Something

With 4.5 Million homes going into foreclosure this year, this new program set out to save more homes from going into foreclosure by reducing principle balances. Is anyone… I mean anyone holding their breath that this is really going to make a difference? I mean haven’t we got the picture yet? It really comes down to what the banks / lenders want to do… Bottom line. Look, the program is crap anyway and they’re not allocating anywhere near enough money to really help.

Read the full post here.

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