Published On: March 13, 2014

HAMP report indicates that nearly 30 percent of those who qualified for HAMP relief have defaulted again.

The other day a caller said “I used a document preparer or bankruptcy petition preparer. Certainly they have obligations to keep my social security number confidential?” Unfortunately I had to say “Oh how wrong you are.”

Bully tactics used to scare or coerce buyers.

The Office of the Special Inspector General published its quarterly report to Congress.  Part of the report deals the results of the Home Affordable Modification Program (HAMP) that bailed out more than 1 million struggling homeowners.  The report indicates that nearly 30 percent of those who qualified for HAMP relief have defaulted again.

As interest rates start to rise there is fear that homeowners won’t be able to stay current on their mortgages

Think about the information you are giving this stranger: all your financial information, your children’s names, bank accounts and your social security number. You do this without the slightest guarantee that the information will be kept safe.

The report also indicates that approximately 800,000 borrowers who are still enrolled in the HAMP program will see their mortgage interest rates gradually rise starting this year — eventually increasing payments by more than $1,000 a month. As the higher payments kick in, regulators and consumer advocates fear that homeowners won’t be able to stay current on their mortgages.  The result of these defaults will be increase in foreclosure (again) and possible decrease in property values.  Unfortunately, the increase in property values (if any) is not offset by the increase in secured debt.  Most homeowners are still in a position that their home is worth less than the secured debt, therefore they cannot refinance or sell their homes.

CLICK TO OUR WEBSITE

The harsh reality is that many homeowners cannot afford their home.  They were persuaded by disreputable realtors or lenders that it was feasible to buy a home above their budget.  What is rarely talked about is the lack of accountability of realtors and lenders for guiding the borrowers into these extremely questionable loans.  Unless it is a sophisticated borrower loans like “interest only” or “adjustable rates” are time bombs just waiting to explode.

First time home buyers are especially susceptible to an unscrupulous realtor and/or lender’s urging them to sign a loan for more then they can afford.  What no one tells these borrowers is that cost of owning a home is not just the monthly payment.  It is the new roof, leaky pipes, HOA dues and assessments, etc.  No one tells the borrower that the realtor and lender make more commissions the higher the loan.

The American dream is to own a home, but the American nightmare is fighting to keep a home they cannot afford.  Be careful and use common sense when buying a home.

By |Published On: March 13th, 2014|Last Updated: May 29th, 2022|

Share this article

About the Author: Diane Drain

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau
5 / 5

“You folks are the BEST OF THE BEST in Arizona.” M.H.

You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.

5 / 5

“My only regret is that I didn’t find Diane sooner.” K.H.

I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.

5 / 5

“Filing for bankruptcy can be a stressful life event” R.A.

Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.

Related Posts

  • Published On: July 24, 2022

    Want to avoid dishonest debt collectors?  Watch this video from FTC’s Consumer Advice By Joseph Ferrari,July 22, 2022 (reprint from FTC, Consumer Alerts) During Military Consumer Month 2022, the FTC [...]

  • Published On: July 20, 2022

    BEWARE OF THE SECRET COSTS OF USING ‘BUY NOW PAY LATER’!! What You May Not Know About These Services Services like “buy now pay later” now account for $100 [...]

  • Published On: June 13, 2022

    Diane Drain received the 2022 Preeminent Award and Gold Client Champion Award from Martindale-Hubbell. The 2022 AV Preeminent award is given to an "elite group of attorneys who have been rated highly by their peers [...]

  • Published On: April 16, 2022

    ARIZONA IS ONE OF 2 STATES THAT WILL TAKE YOUR TAX REFUND IF THIS HAPPENS.  SHOULD THE LAW CHANGE? By RUSS WILES, Arizona Republic (reprinted for educational purposes only) Tens of millions of Americans [...]

My intention is to put you back in control of your life
Start with $0 down*. We provide affordable payment plans.

FREE CONSULTATION