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Chapter 7 & Obama Plan

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    Chapter 7 & Obama Plan

    I just wanted to make sure that everyone knew certain things under the Home Affordable Modification Program (HAMP) or Obama Plan. You can qualify under HAMP even if you had a BK 7 discharge and did not reaffirm the mortgage. Also, you are not required to reaffirm the new modified HAMP mortgage. The above definitely applies to all Fannie Mae owned mortgages and probably to all HAMP mortgages.

    Here is the exact wording in the Fannie Mae guidelines for mortgage servicers:

    If the borrower previously received a Chapter 7 bankruptcy discharge but did not reaffirm the mortgage debt under applicable law, the following language must be inserted in Section 1 of the Trial Period Plan and Section 1 of the Agreement: "I was discharged in a Chapter 7 bankruptcy proceeding subsequent to the execution of the Loan Documents. Based on this representation, Lender agrees that I will not have personal liability on the debt pursuant to this agreement."

    Hope this helps someone,
    Roberto 77

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