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How does HAMP stop foreclosure?

Discussion in 'Loan Modification' started by MauryBallste, Aug 18, 2010.

  1. MauryBallste

    MauryBallste LoanSafe Member

    I've stopped making payments for 2 1/2 months now. How does applying for HAMP actually stop foreclosure?

    If I send my HAMP application tomorrow, what happens and what should I expect?

  2. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Hello Maury!

    Actually HAMP does not stop the foreclosure process. It keep moving forward. However, under the HAMP guidelines, its states that they cannot foreclose on you while you are in the process. The problem is that these are just guidelines and not a law. Hence, mortgage servicer could care less about guidelines.

    You should have plenty of time. Please just do not be under the false assumption that the process has been halted.
  3. Alex Ferreras

    Alex Ferreras LoanSafe Greeter

    First off I'd like to thank you for coming to Loansafe. Here you may find all the help that you need.
    This article explains the HAMP process and what HAMP can do. The article begins off by giving an example of a denial letter. As the article cites, even if you are denied after applying you still would have 30 days to renegotiate with your servicer. During the pending process, your mortgage can be reported for to be pended for foreclosure, but an actual foreclosure sale cannot be carried through during the 30 day period. So to partly answer your question, just applying for a HAMP can postpone a foreclosure sale to give you time to renegotiate a HAMP deal or go through other options.
    This isn't my usual department in this forum, but other information may be found on this off site page.(used as a source on the previous article page).
    If your question was a legitimate action that you are considering, the second link provides much more extensive research. For example:

    "Borrower Response Period
    Supplemental Directive 09-08 describes circumstances in which a written Non-Approval Notice must be provided to borrowers who have not been approved for HAMP. The servicer may not conduct a foreclosure sale within the 30 calendar days after the date of a Non-Approval Notice or any longer period required to review supplemental material provided by the borrower in response to a Non-Approval Notice unless the reason for non-approval is (1) ineligible mortgage, (2) ineligible property, (3) offer not accepted by borrower/request withdrawn or (4) the loan was previously modified under HAMP."

    And under the subtitle, "Deadline for Suspension of Foreclosure Sales" it mentions the fact that a HAMP is to be submitted after the borrower knows that a foreclosure sale date is scheduled and must be submitted "no later than midnight of the seventh business day prior to the foreclosure sale date"
    Check out this thread to avoid making the same mistakes with HAMP

    good luck and don't stop fighting!

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