Bankruptcy And HAMP Part I
As a Bankruptcy Attorney with offices in Fort Myers, Cape Coral, Naples and Port Charlotte, I see people everyday who are in the middle of every type of mortgage modification, involving HAMP and HAFA. So I know that there is quite a bit of misinformation out there concerning a homeowners rights under the HAMP program. Therefore, I am going to follow up with series of blogs to deal with HAMP and the bankruptcy Courts.
HAMP is available in the Bankruptcy Courts. Whether you are in Chapter 7 or Chapter 13, you are eligible for HAMP modification. All you need to do is ask your attorney to submit a request to the mortgage company or mortgage servicer, and the mortgage servicer or mortgage company cannot disqualify you because you are in bankruptcy.
If you do not have an attorney, you can contact the mortgage company or mortgage servicer yourself. Interestingly, the bankruptcy trustee, with the debtor's permission, can contact the mortgage company or mortgage servicer to request a modification. This twist required some thought on my behalf. Ask yourself: Why would a bankruptcy trustee seek a mortgage modification? I think the answer would be different in a Chapter 7 and a Chapter 13.
In a Chapter 7, the Trustee ordinarily collects the rents on investment properties; however, I cannot see a Chapter 7 Trustee seeking a modification under HAMP unless the property had equity in it, the property was being surrendered by the Debtor, and it was near foreclosure so that the Trustee needed additional time to arrange for a sale of the property.
In a Chapter 13, I cannot think of any scenario wherein a Trustee would seek a HAMP modification.
I will continue with other posts on the topic of Bankruptcy and HAMP.
This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Currently, the firm has offices in Port Charlotte, Fort Myers, Naples and Sarasota. Mr. Dellutri also sits on the Board of American Board of Certification. Mr. Dellutri is also one of the founders of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and Mortgage Law Network. Mr. Dellutri also writes for the firm's personal injury litigation blog, www.faircreditreportingactblog.com and www.fairdebtcollectionpracticesactblog.com, and the firm's mortgage modification blog.
