• 09
  • February
    2012

The government's Home Affordable Modification Program ("HAMP") provides opportunities for homeowners in bankruptcy to modify their home mortgages and avoid foreclosure. Homeowners may apply for this program before, during, or after their bankruptcy proceeding. To qualify for HAMP:

· The mortgage loan to be modified must be on a one- to four-family home that is used by the homeowner as their primary residence (investment properties are not eligible);

· The loan must have been originated prior to January 1, 2009;

· The present housing payment (including taxes, insurance, and association dues) is more than thirty-one percent of the gross (before taxes) household income.

· The first mortgage loan balance must be no greater than $729,750 (the balance may be higher for two- to four-unit homes).

· And, the homeowner must have a documented financial hardship.