The US government has implemented several programs to assist upside down homeowners to avoid foreclosure, including HAMP and HAFA.
However, in December 2010, Congress called for a Foreclosure Program Revamp as published in a December 14, 2010 Associated Press Article. “The government should retool its foreclosure-prevention program because so far it hasn’t worked,” a report released December 14 by the Congressional Oversight Panel declared. The program “will never have the reach necessary to put an appreciable dent into the foreclosure crisis,” the report said.
The report calls for the Treasury Department to set objectives and hold banks that administer mortgages accountable for failing to complete loan modifications properly. It also recommends allowing borrowers to apply for loan modifications online and calls for a system to monitor cases and intervene when borrowers fall behind on their payments on modified mortgages.