27 Dec HAMP Mortgage Modifications and Bankruptcy

HAMP, the Home Affordable Modification Program which can modify a mortgage, is no way to avoid bankruptcy. It's a heart-breaker. It builds up false hopes andthendestroys them. That's my conclusion from reading the new Congressional Oversight Panel report. I haven't written on HAMP because I've questioned...

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07 Aug TARP and HAMP Require That Foreclosure Be Suspended

A mortgage lender which received TARP funds, or which voluntarily signed up for President Obama's HAMP program, must suspend a foreclosure action while a borrower's mortgage modification application is pending. That's good news. HAMP is the modification program of the Home Affordable Plan. (HARP is the...

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09 Jun Can Obama’s Mortgage Modification Program Save Your Home?

The Home Affordable Mortgage Modification Program called HAMP, andthe companion home refinance program (HARP) applicable to loans held or securitized through Fannie Mae and Freddie Mac, are touted by the Obama Administration as having the potential to help up to nine million homeowners. On paper at least, both programs seem to have features providing real relief from abusive mortgage terms and unaffordable payments. As an alternative to bankruptcy or as part of a Chapter 13 plan, HAMP could provide the homeowner with protections roughly comparable to those under the proposed Helping Families Save their Homes in Bankruptcy Act under some sets of circumstances, but not under others. The primary difference between judicial modification in bankruptcy and the Obama plan is the requirement of voluntary lender participation. The HARP program is limited in scope. It releases Federal funds to refinance existing mortgages that are current in repayment and do not exceed the market value of the house.
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