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 refinance program.) Lenders can sign up to participate. Banks which received TARP (Troubled Asset Relief Program) automatically “volunteered” for the HAMP program. Here are the lists of TARP recipients (money paid under Capital Purchase Contracts) and HAMP participants.
The HAMP contract with the United States Treasury requires that all Treasury guidelines be followed, including this one which states that “Any foreclosure action will be temporarily suspended during the trial period, or while borrowers are considered for alternative foreclosure prevention options.” See Page 3 of Home Affordable Modification Program Guidelines, dated March 4, 2009.
Make sure you’ve applied for a modification. Yes, the lenders will lose the applications or just not return your calls. That won’t matter, so long as you’ve sent in an application.
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