When you apply for financial help under the Home Affordable Modification Program, your mortgage lender is legally obligated to comply with certain requirements set by the government. If your lender does not and proceeds to foreclosure, you can use this lack of compliance to possibly save your home. 

What Is the Home Affordable Modification Program?

HAMP is a loan modification program that is designed to lower your payments. There are certain requirements that need to be met. In order to qualify, you must prove that:

• Your mortgage is dated before January 1, 2009
• You experienced a financial hardship
• The mortgage owed is not more than $729,750 as of March 2015
• You can afford to pay the newly modified payment

There are several other requirements that must be met. Your real estate lawyer can ensure that you meet those requirements before helping you apply for the program. 

Can Your Lender Still Foreclose on Your Home?

Once you submit an application for HAMP, your lender cannot file for foreclosure until your application is thoroughly reviewed. If your application is approved, you have a trial period in which you have to make the modified payments. If you complete the trial period and make all the payments on time, you can continue to make the modified payments until your home is paid off. 

If your lender has already scheduled your home for foreclosure before you submitted the application, the sale must be put on hold until after your HAMP application is reviewed. It is important to note that if you were approved for HAMP in the past and missed payments, the foreclosure sale can legally proceed. 

What Happens If Your Application Is Denied?

A denial of your HAMP application does not mean that your lender can sell your home right away. There is a 30-day period in which the lender cannot sell your home. There are some exceptions though. If it is found that your home or mortgage was ineligible, the lender can sell the home. Your lawyer can help you determine whether or not your home or loan can be considered ineligible. 

If the lender schedules the foreclosure sale before the end of the 30-day period, your lawyer can take legal action to stop it. Possible action includes asking the court to grant a stay on the proceedings. 

When facing a foreclosure, you usually have options to save your home. The most important thing to remember is that the earlier you take action, the more options you have available to you.