For many homeowners, loan modification programs are not helping them avoid foreclosure.

According to the Washington Post, people who received loan modifications from the federal government are defaulting at an alarming rate: nearly 50% in one segment.

The program is called the Home Affordable Modification Program (HAMP), and it’s run by the Treasury Department. A watchdog report says this program simply hasn’t ensured that its loan modifications would be sustainable for homeowners. As a result, a lot of people are defaulting.

A lot of homeowners dream of loan modification and assume it will fix all their problems. As a bankruptcy lawyer in Memphis, I see this all the time and have noticed two problems with this line of thinking:

  1. It’s very hard to get a loan modification in today’s economy.
  2. Even if you do get a modification, it often doesn’t help in the long-term.

The people affected by this government program are in the second category. They got their loan modification; but it wasn’t enough. Now they’ve defaulted, which means their mortgage rates have skyrocketed and they’re right back where they started: worrying about foreclosure.

If you can get a modification and it allows you to stay in your home at a rate you can afford, that’s great! It’s also, sadly, very rare.

If you’ve defaulted on your loan modification, or if you can’t get a loan modification, you need to stop foreclosure from going through.

That’s what I do as a Memphis bankruptcy lawyer. I help people in your situation all the time.

Contact me today to stop foreclosure in Memphis and get back on track with your house. The conversation is free.


With the advocacy of a liquidation lawyer Memphis, TN residents trust, bankruptcy can usually be completed within 3-6 months from the date of filing.