BANKRUPTCY AND THE HOME AFFORDABLE MODIFICATION PROGRAM (HAMP)

If you are experiencing difficulty in paying your monthly mortgage payment do not lose hope.  There are several options available out there which you may be able to utilize.  The best known program may be The Home Affordable Modification Program (HAMP).

HAMP is a federal program designed to help struggling homeowners stay in their homes by modifying their monthly mortgage payments to make the payments more affordable.  Not all homeowners will qualify for this program.  For those homeowners who qualify, HAMP may provide a real opportunity to save their homes.  The best thing about HAMP is that it can be utilized while in bankruptcy.   Here are the general eligibility requirements for HAMP:  (1) the homeowners must be the owner occupant of the home; (2) the mortgage debt must be less than $729,750; (3) the mortgage debt must have been incurred before January 1, 2009; (4) the monthly total for the principal, interest, taxes, insurance and homeowners’ association fee must be greater than 31% of the homeowners’ current monthly gross income; and (5) the homeowners must with supporting documentation show that they are unable to pay the current monthly mortgage consisting of the total for the principal, interest, taxes, insurance and homeowners’ association fee.  Once these five requirements are met, the homeowners become eligible for HAMP.  However, meeting the eligibility requirements does not entitle the homeowners to an automatic modification of the mortgage loan.

Those homeowners who do not quliafy for HAMP may qualify for another of the many avilable programs.  For a list of the options go to:  https://makinghomeaffordable.gov/  This site also helps homeowners spot scams designed to take advanatge of them.  If you have questions about how HAMP and other programs may be utilized in a bankruptcy, contact us.