Under the Making home Affordable Plan, and even deeper, within the Home Affordable Modification Program is another homeowner assistance program that was developed to help homeowners in bankruptcy. This program allows bankrupt homeowners to take part in the Obama loan modification program despite their current bankruptcy. This program is called the HAMP Help for Homeowners in Bankruptcy Program.
This program was developed to allow bankrupt homeowners the opportunity to obtain a modification through HAMP despite being bankrupt. It is a great addition to other programs such as the Obama refinance program known as HARP and the newest Government mortgage relief which is a high loan to value refinance program
The program is nothing more than some simple lender restrictions and homeowner protection measures for applicable bankrupt homeowners.
Protective Guidelines for Lenders and Bankrupt Homeowners
There are two measures that are applicable, these are outlined directly below.
- Given that a loan modification request or application has been sent from the homeowner, the homeowner’s counsel, or the bankruptcy trustee then the mortgage servicer must consider the homeowner as a modification applicant with out regard to the homeowner’s current bankruptcy.
- If a homeowner is in a HAMP trial modification and files for bankruptcy before the trial period is out the lender may not deny approval based on the homeowner filing bankruptcy.
This is a wonderful protection for homeowners who need restructure their mortgage during the same period of time in which the homeowner is dealing with bankruptcy issues. Just the same we would like to add a notion for homeowners to keep in mind.
This is a world of small print, loopholes, lawyers, and thick contracts. All of which is subject to the interpretation of very expensive and persuasive lawyers. Thus, we suggest that you tread carefully and quietly when pursuing mortgage help from your lender. Sometimes it is fitting to fly under the radar if all else equal; be wise when seeking an Obama modification while you are in bankruptcy especially.