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Hammering on HAMP

HAMP Leading to Bankruptcy

Denial of a HAMP modification led one couple to file for bankruptcy.  After making all payments in the trial modification plan, they were told they were not admitted to the HAMP program and needed to pay $10,000 immediately to the bank.  In bankruptcy, the monthly amount owed on the mortgage went up, not down, and the bankruptcy was dismissed.


House being sold at a foreclosure auction. Axsmith Law Blog

How can homeowners in crisis get competent assistance?

HAMP Facts

Less than one million homeowners have received assistance under the Home Affordable Modification Program (HAMP), six years after its creation. HAMP is a federal modification program originally intended to aid four million struggling homeowners. It was launched in the fallout of the decimated Millennium Boom and continues to limp along today.

HAMP stalled at inception and is still plagued with problems, according to a report by Christy L. Romero from the Office of the Special Inspector General for the Troubled Asset Relief Program (TARP).


72% of homeowners’ HAMP applications were denied by the mortgage holders who owned the loans. The mortgage holders accusingly point their fingers at homeowners, blaming the low HAMP adoption rate on homeowners’ failure to complete paperwork or make the first modified payment.

Scary reading.




There are varying reports of HAMP’s success.  Some claim HAMP helped only about one million homeowners in five years, when 10 million were at risk. The program arguably created more foreclosures than it stopped, as it put homeowners through a maze of deception designed mainly to maximize mortgage industry profits.

Others claim HAMP was designed to help 4 million homeowners, not ten.

If you are facing foreclosure, foreclosure mediation, HAMP denial, phone Axsmith Law at (202) 285-5415.



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