Mortgage Debt: If Your Lender Ignores HAMP

In an attempt to help homeowners struggling with mortgage debt, the government recently revealed HAMP, the Home Affordable Modification Program. While HAMP has helped hundreds of thousands of homeowners throughout the nation avoid foreclosure, it has posed some complications as well. Should you choose to handle your mortgage debt through a program such as HAMP, your loan servicer should abide by the program’s requirements. But what happens if your lender fails to comply with the guidelines?

Understanding How HAMP Helps Stop Foreclosure

The biggest benefit of HAMP is that it helps stop the foreclosure process for homeowners buried with mortgage debt. Therefore, it’s vital for your loan servicer to abide by the program’s guidelines. Once you’ve applied for HAMP, you should be safe from foreclosure activity as your eligibility for the program is evaluated. Even if you’ve been denied, you should remain protected from foreclosure for the next 30 days after your HAMP application was disapproved. The most common causes of a HAMP rejection include:

A loan that was previously amended through HAMP
The property or mortgage is ineligible
You withdrew the application during the evaluation process

If foreclosure actions are still being made against you after you’ve filed for HAMP, you can seek defense against foreclosure. Your servicer must comply with HAMP guidelines, granting you protection from foreclosure as you try to deal with your mortgage debt.

As you attempt to handle mortgage debt through HAMP, your loan servicer is supposed to stop any foreclosure actions against you. If you servicer doesn’t abide by the program’s requirements, consider seeking the help of a foreclosure attorney to ensure that your rights are protected. A foreclosure attorney will help you understand which defenses are available for your disposal if you didn’t receive the foreclosure protection you deserved during your HAMP application process.