The State of Foreclosure in the United States
No word strikes greater fear in a homeowner’s heart than “foreclosure.” Every day, the media trumpets new figures showing a continuing increase in foreclosures.
If you want to keep your home, your best option is to work something out with your mortgage lender in a way that will satisfy both of you. If, on the other hand, you are ready and willing to leave your home, there are ways to follow that path that will leave you relatively flush rather than destitute.
Most people I talk to in my practice want to stay in their homes but need to change some aspect of their mortgage—the amount of principal, the interest rate, the monthly payment. There are a number of ways to make this happen—by refinancing the mortgage, modifying the mortgage, or filing for bankruptcy.
Many home mortgage modifications happen under a government program known as the Home Affordable Modification Program(HAMP). However, lenders are free to follow their own procedures for settling mortgage issues that don’t qualify for modification under the HAMP guidelines. Participation in HAMP is also voluntary for many lenders, and those who don’t participate in HAMP offer a variety of workout approaches.
HAMP employs a number of government-funded incentives for lenders to modify first and second mortgages. Unfortunately, HAMP has not come close to providing adequate relief for the millions of homeowners who can’t afford their mortgages, though a second level of HAMP (Tier 2) was introduced in 2012 to make it easier for struggling homeowners to qualify for relief. The deadline for the program has been extended to December 31, 2015.
by: Stephen Elias, Attorney