On December 31, 2016 the Home Affordable Modification Program (“HAMP”) which has helped homeowners save homes for the past six years is scheduled to expire. Homeowners who have applications for modifications which are submitted up to that date will still be eligible for consideration.
It is important that homeowners who are interested in seeking a loan modification under the HAMP program apply before the termination date. Eligible borrowers may qualify for interest rate reductions, extensions of maturity dates and, in some cases, reductions in the amount due.
Homeowners must also be careful to avoid loan modification scams. Many unscrupulous entities and individuals are using the termination of the HAMP program as a scare tactic to cause homeowners who are not eligible for HAMP, or who will not be affected by the termination of HAMP, to apply for modifications, often at a significant cost.
“Over the past several years we have had may people contact us after paying in some cases thousands of dollars to loan modification experts for promises of modifications that they were never eligible for” says Bruce H. Levitt of the law firm of Levitt & Slafkes, P.C. He adds, “that seems to have increased in the last several months since the end of the HAMP program was announced”.
A loan modification is a long, stressful process full of seemingly details and requirements. If you have any questions concerning loan modifications, please contact our office for a free consultation. The knowledgeable attorneys of Levitt & Slafkes, P.C. will carefully explain the loan modification process so you can make an informed decision about how to best proceed. Contact us at 973-313-1200 today!