Here’s a link to the new directive from the Treasury for the Home Affordable Modification Program (HAMP), which includes guidelines for HAMP modifications in bankruptcy. These guidelines increase the ability to use chapter 13 as a platform to obtain a mortgage modification under HAMP. Now, homeowners in chapter 13 are required to be considered for HAMP upon request. The chapter 13 plan may provide for modified payments at 31 percent of gross income, thus allowing chapter 13 debtors a means to reduce their mortgage to an affordable level. The new rules make a number of other procedural changes to benefit homeowners in bankruptcy. Click here to read more on Treasury’s Supplemental Directive 10-02 to HAMP.
The directive is too long to post here, so I’ve included a link.