Do I qualify for HAMP if I file for bankruptcy?

Can you still qualify for HAMP while in bankruptcy? It depends on the lender and the qualifications of the homeowner, but the process can be initiated. In mid-2010, the US government passed regulations that allow a homeowner to apply for a HAMP modification on their mortgages, even though they're in bankruptcy.

The Specifics of HAMP and Bankruptcy

Legislation was passed to give a petitioning homeowner another option to try to keep their residence. Simply put, a lender cannot refuse a request by the homeowner, the representing attorney, or the trustee on the case. By law, they must accept the paperwork and start the investigative process. What happens going forward depends on if the homeowner can qualify under the HAMP guidelines.

Lenders may still start the foreclosure process while the qualifying is going on. Not exactly a pleasant time for the homeowner, but this is an unfortunate part of the process. So not only does the owner have to work on getting their bankruptcy together, they also have to deal with the many court proceedings that will come with pre-foreclosure. In fact, the bank can go so far as to ask for eviction even though the foreclosure hasn't finished.

Hiring Legal Help

This is a situation that needs legal help. Do not mess around with the bank on your own. Consult with an attorney and hire one that will be able to take on all of your problems. Modifying a loan in bankruptcy is tricky. Having legal representation will keep the bank's hands above the table.