The Home Affordable Refinance Program and the Home Affordable Modification Program offer options for home owners suffering the effects of abusive lending. See also, Second Mortgage Modification options by clicking here.

Participants in the Modification program may be found by clicking here. To reduce your monthly payments you must make sure that your lender offers a reduced rate, a longer payment term, or/and a reduction in the principal.

Criteria: If your monthly payments, interests, taxes and insurance are greater than 31% of your gross monthy income, the interest rate may be reduced to 2% and the interest may be fixed permanently. Additionally, the term may be extended to 40 years and the principal may be deferred.

While in Bankruptcy it is possible to utilize the information provided for the Bankruptcy Court.  Filers must complete a Hardship Affidavit to begin.  Click here to print the Affidavit.

In South Carolina Administrative Order 2009-22-01-1 will also allow an individual in foreclosure to challenge its lender’s assertion that the Home Affordable program does not require a modification in his or her foreclosure case.

Sources: South Carolina Young Lawyer, Vol.2, Issue 1 (Feb. 2010)(link coming);
http://www.freddiemac.com/news/pdf/interventions_in_mortgage_default.pdf; https://www.hmpadmin.com//portal/programs/directives.html.

If you are in bankruptcy, court approval is required to modify your mortgage.  Your attorney can provide the court with a consent order to modify your home mortgage that reflects an agreement between you and your bank.  The court will approve of the order if the order provides the following:

Other possible remedies suggested in the South Carolina Young Lawyer: Truth in Lending Act, the Real Estate Settlement Procedures Act, the South Carolina Unfair Trade Practices Act, the South Carolina Consumer Protection Code, breach of contract and the implied coventant of good faith and fair dealing, fraudulent omissions, fraudulent concealment, etc.