If you file the modification as part of a chapter 13 bankruptcy case, the modification request will proceed under the Miami Bankruptcy Court's new "LMM" program (Loss Mitigation Mediation) which has been very successful in helping homeowners achieve a mortgage modification.
Suspension of Referral or Foreclosure or Foreclosure Sale
Immediately upon a mortgage borrower's application for consideration for a HAMP mortgage modification, a may not refer a mortgage loan for foreclosure or conduct a scheduled foreclosure sale unless
- the borrower has been evaluated for HAMP and determined to be ineligible for the program
- borrower accepts a Trial Payment Plan and fails to make current trial period payments unless
- the mortgage servicer is evaluating the borrower for a HAMP Tier 2 application until the evaluation for a HAMP Tier 2 is complete and the borrower is determind to be ineligible for HAMP Tier 2
- the borrower or co-borrower states he is not interested in pursuing a HAMP modification
- the remaining non-borrower was unable to assume the note and re-apply for HAMP during the period provided under the rule
- the Loss Mitigation Application is incomplete and i. more than 120 days has passed or ii. more than 30 days has passed since the servicer sent the borrower an "Incomplete Information Notice"
- If the borrower submits an incomplete Loss Mitigation Application the mortgage servicer if the application still remains incomplete after the later of
- a delinquency for more than four months
- 30 days has has passed since the servicer sent the borrower an "Incomplete Information Notice" and the Loss Mitigation Application still is incomplete
Suspension of Foreclosure after Referral for Mortgage Foreclosure
If the foreclosure has already been filed, the mortgage servicer must suspend the foreclosure process upon the borrower's accept of a Trial Payment Plan upon verified income and for the duration of the trial period
Suspension after Foreclosure Sale Already Set
If a borrower submits a HAMP application at least 7 business days prior to a scheduled foreclosure sale, the mortgage servicer must immediately suspend the foreclosure sale for a period of time as necessary to evaluate the borrower's HAMP application if the new application under any of the following circumstances:
- If the borrower had made at least one payment under a HAMP Tier 1 Temporary Payment plan
- unless there has been a change in circumstances
- If the borrower had defaulted under a HAMP Permanent Modification and either i. 12 months has passed since the effective date of the modification or ii. the borrower has experienced a change in circumstances
- the borrower was previously determined to be ineligible for a HAMP Tier 1 modification
