Mortgage modifications are often determined by whether the owner (not servicer) is either a participant in HAMP or a recipient of TARP bailout funds.
Here’s how to check on your lenders:
First, use our Resource page on our website to look up who likely owns your loan by doing a Fannie, Freddie or MERS lookup search.
Second, see if the owner of your loan is a HAMP or other governmental program participant.
Third, see if the owner of your loan was a recipient of TARP funds in the 2008 bailout.
If your loan passes the above tests, your lender is required to run you through a HAMP analysis (even if they would prefer a short sale). You can qualify for a HAMP modification whether or not you file bankruptcy, although you might find the success rates are higher in a bankruptcy. The Tampa Division bankruptcy courts just established a formal mediation program in October 2011 for homeowners who have experienced difficulty in obtaining mortgage modifications.
Despite the above, homeowners should always make the decision as to what is in their best interest and modification of a home that is underwater by 50% is probably not wise (although many factors play into making this determination). For a free consultation, please contact us: Arkovich Law