Home Affordable Modification Program & Foreclosure Defense
Having an experienced California foreclosure defense attorney by your side can make the difference between retaining and losing your home. Get started on securing your property along with a better future today by contacting McFarlin LLP. Our legal team consists of attorneys that are all highly capable and respected in their fields, including real estate litigation and homeowners’ rights. By working with us, you’ll have more than a fighting chance at preventing foreclosure. To learn more about our services, call us toll-free at (888) 728-0044.
What Is HAMP?
The Home Affordable Modification Program (HAMP), a federal program created by the Financial Stability Act of 2009, helps borrowers prevent foreclosure of their homes by lowering first-lien mortgage payments with a loan modification. In order to qualify, you must meet the following criteria:
- You took out the mortgage on or prior to January 1, 2009.
- Your mortgage debt does not go beyond $729,750 for a primary residence or single unit rental property; $934,200 for a 2-unit rental property; $1,129,250 for a 3-unit rental property; or $1,403,400 for a 4-unit rental property.
- Your property has not been condemned.
- You are in a state of financial hardship.
- Your mortgage for your primary residence is either delinquent or on the verge of becoming so.
- Your mortgage loan is in default for a non-primary property.
- You can afford a modified payment.
- You have no recent criminal record (within the past decade) of a serious theft or fraud conviction in connection with a mortgage or real estate transaction.
Upon receiving approval for HAMP, you will be given a three-month trial period in which you will have to make reduced payments. If your trial period is successful, and your financial circumstances don’t change, you will automatically receive a permanent loan modification.
Foreclosure Prevention under HAMP
As long as you submit a request for HAMP consideration no later than midnight of the seventh business day prior to the foreclosure sale date, the loan servicer must postpone the sale for as long as you are being evaluated for HAMP. However, the servicer may resume the foreclosure sale if you:
- Are determined ineligible for HAMP;
- Fail to make a payment during the HAMP trial period; or
- Have lost good standing with HAMP by missing three payments.
If you successfully had your first mortgage modified under HAMP, you may qualify for modifications or principal reductions on a second mortgage under the Second Lien Modification Program (2MP).
Contact Our Offices Today to Learn More
Ever since the subprime mortgage crisis started, homeowners have received numerous protections enforced by the government. Yet, many remain unaware of their options and end up losing their homes out of ignorance. Don’t let this happen to you. Go over all possible options with the knowledgeable attorneys at McFarlin LLP. We are ready to help you fight against foreclosure.