When the housing market crashed, homeowners sought help from various nonprofit and government programs for mortgage relief. President Barack Obama’s HAMP or Home Affordable Modification Program was a popular choice for homeowners.
If the modification was approved, the homeowner was able to pay the mortgage at a 2% interest rate. After five years the loan resets to the average primary interest at the time of modification. This year – the first round of HAMP-approved loans will start to increase.
The problem is many of the modified loan homeowners are still struggling to find stable employment or juggling with other debts.
A bankruptcy with Geraci Law could be the solution. If your mortgage payment is going to increase when the HAMP 5-year relief expires and you are living check-to-check with the other bills, consider debt relief.
Chapter 7 eliminates unsecured debts like credit cards and Pay Day loans. By eliminating the minimum payment on your other debt, you can readjust your budget to handle any changes with your mortgage.
It’s absolutely free to meet with our attorneys. Give us a call if you are worried about your home loan.
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