Consumer Law

Could Banks? HAMP Shenanigans Put a Kink in Their Foreclosures?

By Sam Glover

The Indiana Court of Appeals have suggested that banks that do not comply with Fair Housing Act servicing guidelines may not be able to foreclose a property until they do. HAMP—the Home Affordable Modification Program—is not much different in character than the FHA servicing guidelines, so the Indiana court’s decision might provide a way to stop foreclosures, at least until banks and mortgage services give the homeowner an honest shot at a HAMP mortgage modification.

It turns out that using HAMP as a shield has been tried with some success, so it’s probably worth a try for frustrated homeowners facing foreclosure after a failed attempt at mortgage modification.

(photo: http://flic.kr/p/6jMJHz)

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Full post as published by Caveat Emptor on January 01, 2011 (boomark / email).