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In Foreclosure?

You can still save your home under the government HAMP modification initiative!

By Mitchell J. Nowack, Esq.

Homeowners in South Florida have suffered appalling losses over the last few years.

Home prices continue to fall, placing close to a half of million homes in South Florida under water, with a majority of foreclosures in Florida being here in Miami Dade, Broward, and Palm Beach Counties.

As a result, many of them have had their life savings wiped out and their financial lives ruined.

The good news is that the many homeowners upside down on their mortgages who are also way behind on other bills can consider bankruptcy as an option to resolve their debt issues and to save their home.

Homeowners in bankruptcy are allowed to participate in a government program called the Home Affordable Modification Program (HAMP) to modify their mortgages and save their homes from foreclosure.

HAMP is designed for homeowners who can't afford their mortgage payments to get a significantly lower interest rate, sometimes as low as 2%.

The Mortgage Company can even extend the loan to 40 years to help lower the payment.

When approved, all the arrearages on the loan are added back into the mortgage, the loan is now current and the home is no longer in danger of being foreclosed.

If a home is being foreclosed on, the owner declares bankruptcy, and then applies for a HAMP modification.

The foreclosure is permanently on hold by the Bankruptcy Court until the bank gives a final answer on the HAMP modification request.

HAMP began as an initiative of the Obama Administration to help reduce the payments delinquent and at-risk borrowers in homes where the values decreased below the amount of the mortgage on their residence. It was initially funded with $50 billion from Wall Street bailout money and another $25 billion contributed from Fannie Mae and Freddie Mac, two taxpayer-owned real estate lenders.

Even if a homeowner declares either Chapter 7 or Chapter 13bankruptcy, he or she may qualify for a HAMP modification that will result in the reduction of a monthly payment to affordable levels-and HAMP is not limited to first mortgages, but can also result in modifications of junior leads in conjunction with the primary lien on the house.

In order to qualify for a HAMP modification, the residence must by the debtor's primary home; the first mortgage had to have signed before January 1, 2009; the unit must be a 1-4 residential unit; the first lien on a one-unit home must be less than $729,750, for a two-unit home, less than $934,200, for a three-unit home, less than $1,129,250, and for a four-unit home, less than $1,403,400; your mortgage payment, taxes, insurance and homeowners dues must be at least 31% of your income; and you must affirm that you are not a criminal.

The paperwork for a HAMP modification is also substantial, with requirements for the submission of a number of documents must showing that the house is underwater and that the mortgage payment is unaffordable because of a financial hardship, such as failing health or extended unemployment.

Are you being foreclosed on?

Are you looking to modify your home payments and eliminate your debt problems?

Think a HAMP modification may be an option to get out of foreclosure or make your monthly payments reasonable?

Why not learn more at a free consultation about your options about qualifying for a HAMP modification under a Chapter 7 or Chapter 13 bankruptcy?

When we meet, I will review your debt situation and evaluate your foreclosure situation and whether you are eligible for a Chapter 7 or 13 Bankruptcy and whether it is the best remedy in eliminating your debt. If it is, I will walk you through the process, step by step, explain all your legal options, your rights and obligations, and advocate for you in the Bankruptcy Court proceedings.

Make an appointment with me now! We have three convenient locations in Miami-Dade, Broward, and Palm Beach Counties.

Email me at or call my office for an appointment at 305-698-2265 and let's get started restructuring your life.

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