The Treasury Department released data this week on the Home Affordable Modification Program that shows 3.2 million homeowners are eligible for the HAMP program but that only 295,000 have actually gotten a permanent modification.

The Wall Street Journal yesterday also reported that some homeowners, trying to get a loan mod but often having to wait 6-12 months for their bank to determine eligibility, continue making payments but deplete their savings, putting them into worse financial straits.

For many homeowners who can’t get a loan mod through the HAMP program and want to avoid foreclosure, the Administration has begun the Home Affordable Foreclosure Alternatives (HAFA) program – basically, a “pre-packaged” short sale that provides a $3,000 relocation allowance for the homeowner plus financial incentives for the lenders to do a short sale.