Servicers can foreclose under Making Home Affordable (HAMP) by doing 1 of 5 things

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The servicer evaluates the borrower for HAMP and determines that the borrower is ineligible; or

This step requires the lender to actually take a loan modification application from a delinquent borrower.


The borrower fails to make the monthly trial period payments after being offered a trial period plan when the payment is due that month; or

The borrower must miss the trial payment in the month that it was due. Some delinquent borrowers have enjoyed not making payments before being approved, but this seldom is tolerated under a trial plan.


The servicer makes "reasonable effort" to solicit the borrower to supply required information to the servicer and the delinquent borrower fails to res

This new directive defines what constitutes "reasonable effort". In short, the servicers needs to make a series of attempts to contact the delinquent borrower and document their efforts.


The servicer makes "reasonable effort" to solicit the borrower without establishing "right party contact"; or

This in part covers the delinquent borrower has walked away from the property.


The borrower or co-borrower expresses disinterest in pursuing a HAMP modification and the servicer's servicing system reflects such statement.

This accounts for the many times where borrowers simply no longer what the house because it is too upside-down and would rather just let their property be foreclosed on.

Additional Resources

For details, see the HAMP Making Home Affordable web-site at

New Foreclosure Guidelines Article



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