How does bankruptcy affect HAMP eligibility?

It's understandable for someone to ask "can you still qualify for HAMP while in bankruptcy?" Trying to keep a home through a bankruptcy is a tricky process, one that has the homeowner using whatever they can to ensure some security. A HAMP loan, which is a government loan modification, may be their best shot.

Bankruptcy and HAMP

The short answer is yes, it is possible to qualify for HAMP even during a bankruptcy. On June 1, 2010, legislation was passed that requires lenders to consider a modification at the request of the borrower, the borrower's lawyer, or the bankruptcy trustee. A request from any one of these entities cannot be ignored. This also applies to someone who's filed and has gotten a discharge.

A borrower that is in the trial period but then files for bankruptcy may not be denied the HAMP modification. What the government is doing is allowing those who go into bankruptcy to try to save their homes a shot at using federal protection to do so. Borrowers are not allowed to use the filing and/or discharge as a reason for denying the borrower a chance at modifying their loans.

Get Legal Help

Financial situations that force someone into bankruptcy need the expertise of a lawyer to help sort things out. A lawyer can protect the client's rights and assist in getting the bank to cooperate for a HAMP loan. Someone trying to save their home is going to be best served by hiring an attorney to fight on their behalf.