The Home Affordable Modification Program
(HAMP) which is the current mortgage program is not available for chapter 7 bankruptcy filers. This program was designed to help over three million homeowners, however, to date, has been used by only about 500,000 homeowners. This program is being criticized by both sides on Capitol Hill. At the recent hearings, it was pointed out that the program is more bureaucracy than effective legislation. While we are not confident that this will pass anytime soon, we are pleased that the Congress is addressing a problem affecting so many folks in Massachusetts. Further, in Bankruptcy Court, we can’t do anything about mortgages that are current, albeit at a high interest rate.