I have some interesting news regarding HAMP mortgage modifications I came across regarding Home Affordable Modification Program (HAMP) (Obama modifications) from the Treasury Department.
“Supplemental Directive 10-02 makes clear that borrowers in active Chapter 7 and Chapter 13 cases are eligible for HAMP (Obama) modification on the basis of a bankruptcy filing, whether filed before, during, or after a trial plan. This is a marked departure from Treasury’s prior guidance in HAMP Supplemental Directive 09-01 that borrowers in bankruptcy were eligible for HAMP modifications “at servicer’s discretion.”
In addition “The guidance reiterates Treasury’s previous position in Supplemental Directive 09-01 that borrowers who have received a Chapter 7 discharge and did not reaffirm the mortgage debt are still eligible for a HAMP modification. The following language must be inserted into the modification agreement: “I was discharged in a Chapter 7 bankruptcy proceeding subsequent to the execution of the Loan Documents. Based on this representation, Lender agrees that I will not have personal liability on the debt pursuant to this Agreement.” “
If any of this concerns you please contact me for additional information.