Roughly 800,000 homeowners still enrolled in the government’s Home Affordable Modification Program (HAMP), will see their mortgage interest rates gradually rise starting in 2014. Thirty percent of those who qualified for relief have defaulted again.
Unfortunately, although home prices have increased over the last two years, household incomes have remained flat, and many homeowners still owe more on their mortgages than their homes are worth.
We want you to know that you may have additional options. If you find yourself owing more on your mortgage than your house is worth, are under or unemployed, or facing foreclosure, bankruptcy may be the appropriate option for you. By filing for chapter 7 bankruptcy, you can let go of an underwater home and prevent the mortgage lender from trying to collect against you by discharging your debt.
If you are enrolled in the HAMP program and in danger of defaulting or perhaps facing foreclosure, a chapter 13 bankruptcy may allow you to save your home. Chapter 13 bankruptcy allows debtors to stop the foreclosure process and force mortgage lenders give the homeowner up to 5 years to cure any delinquencies through chapter 13 bankruptcy plan payments.
As the HAMP program is phased out, homeowners enrolled in the program will see interest rates that were reduced all the way down to 2% gradually rise to interest rates at the time the program was initiated. While the economy has improved, many individuals and families have not recovered. At The Sader Law Firm, we are here to help. Give us a call today for a free phone consultation. Our experienced Kansas City bankruptcy attorneys can help you determine what your bankruptcy options are and how bankruptcy may be able to assist you towards a brighter financial future.
For the full article outlining the threat to homeowners with the end of the government’s HAMP program, click here.