The Truth about HAMP & Government Programs

There are a number of government programs available to people who are struggling to keep up with mortgage payments. Unfortunately, many of the programs that were intended to help people are simply putting them in a position to fail. Additionally, with the new administration coming into power, there are no guarantees that these programs will remain in effect.

At Billbusters, Ledford, Wu & Borges, LLC, we offer real debt relief services from accomplished attorneys. We use the power of the law to help our clients achieve debt relief, while avoiding creditor actions like home foreclosure.

Are you struggling to keep your home? Contact a mortgage assistance lawyer by e-mail or call 312-651-4200 for a No Obligation Consultation at any of our seven office locations. Our Chicago mortgage assistance lawyers are here to protect your rights.

The HAMP Program

The Home Affordable Modification Program (HAMP), also known as the Obama Program, was enacted to help homeowners modify their existing mortgages to avoid foreclosure. While the plan ostensibly calls for mortgage lenders to work out a loan modification plan that falls within the borrower's means, in practice, the plan has proven to have limited value for most people who participate.

The HAMP program has a number of deficiencies which harm the borrowers it was meant to protect:

  • It has no teeth: There is little to no incentive for lenders to participate in the program. There is no government authority protecting the rights of the borrower.
  • HAMP does not stop foreclosure: The HAMP guidelines state that a lender should not foreclose on a property while the borrower is in the HAMP process. The problem is, these are just guidelines, not law, and many lenders ignore them, continuing on with the foreclosure process.
  • It is very complex: Dealing with any government entity can be time-consuming and frustrating. The HAMP application process is notoriously flawed, even by those standards.

Many people who have tried to use the plan to avoid foreclosure have wound up worse off than before. The bank can let months pass while considering a loan modification plan, and ultimately do nothing. Meanwhile, mortgage arrears build up, leaving the borrower with all of the debt and more, and time lost that could have been spent exploring other options.

If you are facing foreclosure and have questions about the HAMP program, bankruptcy or other debt relief options, our attorneys are here for you.

Contact Us

Contact our law offices online or call 312-651-4200 to speak with an experienced Illinois mortgage defense lawyer. We are ready to help.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.