Foreclosure Defenses: The Lender's Failure to Comply With HAMP

If your loan servicer did not comply with its obligations under HAMP, you might be able to use this as a defense to foreclosure.

If you have a mortgage modification through HAMP (the Home Affordable Modification Program), but your loan servicer did not comply with the terms of the contract or the program somehow, you may have a defense to a foreclosure action.

Read on to learn more about HAMP and how your loan servicer’s failure to comply with the program guidelines might help you fend off a foreclosure.

The Home Affordable Modification Program (HAMP)

The Home Affordable Modification Program (HAMP) was part of the government’s Making Home Affordable initiative. HAMP modified first-lien mortgages.

In most cases, HAMP provided borrowers with a lower monthly mortgage payment, with an the interest rate that starts to climb after five years—rising about 1% each year for several years. For example, immediately after modification the rate could be 2%, but eventually end up at 6%.

A HAMP agreement is a contract. If the servicer doesn't comply with the terms of the HAMP contract, you might have a defense to the foreclosure.

If Your Servicer Doesn't Comply With HAMP

While the HAMP program stopped taking applications in December 2016, if you have a HAMP modification and your loan servicer failed to act in accordance with program guidelines or the modification contract and improperly started a foreclosure against you, you might have a defense to the foreclosure.

Getting Help

If you want to learn about potential defenses to a foreclosure, including violations of HAMP, consider talking to a local foreclosure attorney who can advise you about what defenses are available in your particular situation and how to enforce your rights.

If you’re struggling with your mortgage payment, contact your mortgage servicer or a HUD-approved housing counselor at 888-995-HOPE (4673) as soon as possible.

Talk to a Lawyer

Start here to find foreclosure lawyers near you.

How it Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you
FEATURED LISTINGS FROM NOLO
Swipe to view more
FACING FORECLOSURE ?

Talk to a Foreclosure attorney.

We've helped 75 clients find attorneys today.

How It Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you