Mortgage Modification And Bankruptcy: HAMP Directive Protects Bankruptcy Debtors

Many people forced to file bankruptcy against unsecured debts are also trying to save their primary residence from foreclosure by negotiating mortgage modification. Many of my clients and callers are very worried that a bankruptcy could mess up their mortgage modification effort. Not true.

In March, 2010, the government issued a Supplemental Directive under HAMP (Home Affordable Modification Program) designed in part to assist and protect bankruptcy debtors. Lenders must considered bankruptcy debtors’s request for mortgage modification, and homeowners in the midst of a trial modification cannot be denied HAMP modification if and when the file bankruptcy. Clients ask me often if they have to reaffirm their mortgage in bankruptcy in order to pursue mortgage modification. The answer is "no." The HAMP rule provides that Chapter 7 bankruptcy debtors who do not reaffirm their mortgages are equally eligible for mortgage modification. The Chapter 7 debtor can modify his home mortgage without personal liability in the event of subsequent default.

The HAMP directives have other important bankruptcy protections and rule. Discuss your mortgage modification with your bankruptcy attorney.

Comments

[Louie James]

Yes it's true. This is really imperative information to individual to have a great idea about this substance. This can be part to individual to have excellent verity about this situation. This is truly important to know nor comprehend the momentous fact about this matter so that the individual would be able to aware of this case. If you’re considering filing for bankruptcy it is important to have a good bankruptcy lawyer on your side. A bad lawyer can actually hurt your case so it pays to get the best legal help you can find. Your bankruptcy lawyer will help you to navigate through the court proceedings effectively. To find a good bankruptcy lawyer you will need to do some homework. Avoid picking a name out of the phone book. Instead do some research on good lawyers in your area. One of the best ways to find a reputable lawyer is through word-of-mouth referrals from other legal professionals.If you can find several individuals who have been satisfied with a lawyer’s performance chances are he or she is probably doing a good job of representing his clients. A good bankruptcy lawyer can help your case, but many lawyers are overworked and may neglect important details based on a heavy caseload. Don’t let this happen to you! An incompetent bankruptcy lawyer can seriously jeopardize your financial future so don’t waste time on inferior services. Start searching for a good bankruptcy lawyer the minute you decide to file for bankruptcy. The sooner you enlist professional help the easier the process is going to be. Don’t put it off until the last minute!