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Loan Modifications and the HAMP Program
July 5, 2012
 The Home Affordable Modification Program (HAMP) launched in early 2009 boasted potential mortgage assistance for 3 to 4 million homeowners. It is estimated that only 816,000 homeowners have received a permanent modification from this program as of the end of September 2011 according to the program's web site.  Critics of the program blame this failure on the lenders' slow response to implementing HAMP modifications combined with the fact that many lenders would rather put a homeowner in one of their in-house, more profitable, loan modification programs. 

Many homeowners that have come to me after trying to work with their lenders on a HAMP mortgage modification tell me it's  has been frustrating and time-consuming, navigating through a sea of paperwork, and playing an endless game of phone tag. Some have ended up in a worse situation than when they began.

But recently, bankruptcy attorneys in the Middle District of Florida Bankruptcy received some positive news for those interested in a HAMP mortgage modification. Our Judges have implemented a system to try and speed up the process and remove the unnecessary anxiety that has accompanied homeowners in their attempt to navigate through the loan modification process. Homeowners that file for Chapter 13 bankruptcy protection can now file a motion in Federal Court under the bankruptcy that forces the mortgage company into a mortgage mediation. This process causes the mortgage company to either accept or deny a loan modification under the terms of the HAMP program

With the thousands of loan modification requests pouring into a mortgage companies loss mitigation departments your file has or will likely get passed over several times before it is reviewed a chance to actually review it.  Loan modification through the Chapter 13 bankruptcy is not only a way to get the mortgage company to pay attention to your mortgage modification, this puts you in the front of the line and forces the mortgage company to make an actual decision about modifying your loan. 

Please schedule an appointment with me via the telephone or in-office and I can give you a lot more details on the Chapter 13 Bankruptcy Loan Modification process and HAMP program.