Thomas F. Miles, Attorney and Counselor at Law
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Seeking debt reorganization, some set to lose their home

Many California readers may have forgotten the details of the government mortgage modification program known as HAMP. The Home Affordable Modification Program was rolled out nearly five years ago in an attempt to aid struggling homeowners who were in need of debt reorganization. As the program nears the five-year mark, however, many who signed up will once again be at risk of losing their homes.

HAMP promised homeowners an interest rate reduction that could give them the chance to regain control over their finances. As many as 1.3 million homeowners signed on. However, the program was flawed from the onset, and went through a number of shifts and changes over the years.

The initial loan modifications were only good for a period of five years. Therefore, as those modifications begin to expire this year and next, many people will watch their monthly payments begin to rise. If their financial standing has not improved since taking the HAMP modification, many will be at risk of losing their home to foreclosure.

This is just one of many programs that struggling homeowners have turned to in order to retain their homes and reach a better level of financial stability. When California homeowners are in need of debt reorganization, there are a number of available options, including loan modifications and personal bankruptcy. Each scenario is unique, but with the right approach there is a solution to virtually every circumstance. The best course of action is to research these and other possibilities in an effort to find the right fit.

Source: The Guardian, "The government program that failed homeowners", David Dayen, March 30, 2014

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