Can I Modify My Mortgage in Bankruptcy?

The Home Affordable Modification Program (HAMP), also known as the Making Home Affordable program, is being used in the bankruptcy courts in SW Florida. The HAMP program was established by the government to help struggling homeowners save their homes. You may or may not be eligible for a HAMP modification; however, you will never know unless you try.

If you are a homeowner and your monthly mortgage payment exceeds 31 percent of your verified gross (gross means pre-tax and other deductions) monthly income, you may apply for a HAMP modification with your bankruptcy.

To qualify:

  • You must own a home that is your primary residence. This can be a single-family home, duplex, or multiple units (although multiple units need to be looked at more carefully).
  • You must have entered into your mortgage before Jan. 1, 2009
  • You must have a mortgage payment (including taxes, insurance, and homeowner’s association dues) which exceeds 31 percent of your gross income.
  • You must have a principal balance of less than $729,750 on your first mortgage. Note: this is for a single-family home. Multiple units differ.
  • You must have documented financial hardship.

If you qualify, call our office immediately to discuss modifying your mortgage in a chapter 13 bankruptcy. Find out about all the benefits to which you are entitled. Change your perspective. Change your life.