Featured News 2012 Have you been Involved in a HAMP Scam?

Have you been Involved in a HAMP Scam?

The United States Treasury’s Home Affordable Modification Program or “HAMP” is a program for employed men and women who are still struggling to meet their mortgage payments. Recipients need to apply to be included into the program, which is sponsored by the Departments of the Treasure & Housing and Urban Development. HAMP can typically lower their monthly mortgage payments in order to make them more affordable. The mortgage payments may last longer, but for a family that is at risk to foreclosure this is often a preferable option. If you currently occupy your home as a primary residence and are worried that you can’t make your mortgage payments, then you will want to consider HAMP.

In order to apply for HAMP, borrowers need to contact their mortgage servicer and discuss the HAMP evaluation process. Borrowers are typically interviewed before the process. Since June 1st, 2012 homeowners who have a secondary residence can also apply for HAMP. As well, any homeowners who have not qualified for HAMP on the past because of their debt-to-income ratio can reapply under the new qualifications issued by the Obama Administration to help fix the housing crisis. Homeowners who previously received a HAMP trial period plan but defaulted can now reapply. As well, any homeowners who previously received a permanent modification but defaulted on their payments and lost good standing can reapply under the new laws.

According to a government source, if you obtained your mortgage on or before January 1st, 2009, then you may be eligible for HAMP. You will also want to prove that you have not been convicted of a felony larceny, theft, fraud, or forgery within the past 10 years. All people convicted of money laundering and tax evasion will also be denied from HAMP. You will need to present documented income to support your modified payment, and prove that you have a financial hardship or are delinquent in your mortgage payments. If you can convincingly prove that you are falling behind on these payments that may also serve as enough proof. The U.S. Department of Treasury has specific monetary values that you must owe depending on the type of home you own.

For example, a person who owns a two-unit rental property must owe up to $934,200 on it in order to qualify. As well, a person who lives in a 3-unit rental property must owe $1,129,250. $1,403,400 must be owed on a 4-unit rental property. The owner must prove that the property has not been condemned for any reason in order to qualify for HAMP.

In Cincinnati, Ohio, consumers have filed a class action lawsuit against Sun Trust Mortgage Inc. and SunTrust Bank Inc. The borrowers claim that the company deceived homeowners into paying thousands of dollars for home loan modifications that they never received. The modifications were promised under “HAMP.” The mortgage company failed to follow through on any of the agreements and made off with the money. When a mortgage company fails to uphold their end of a loan modification for a borrower who is qualified, then that borrower has the right to sue.

Real estate lawsuits regarding loan modifications are quite common. If you have been cheated or treated unfairly because of a loan modification discrepancy, then you have the right to contact a real estate attorney and seek compensation. For too often homeowners are the victims of detailed and confusing scams. Some mortgage lenders will prey on homeowner’s ignorance and scam them into giving thousands of dollars that can’t be refunded. If you have been scammed, don’t be passive about the wrongdoing. Instead, you have the right to seek compensation for the wrongs done to you. Talk to a real estate attorney today if you were involved in a HAMP scam with a mortgage company and want to right the wrong.

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