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• "I sent this letter certified after receiving the free guide [from] Phillips & Garcia P.C. Saved Foreclosure. Thanks a million!" A.D. from Colorado
• After seeing first hand what you are up against concerning the big banking companies, we are even more amazed that you are willing to fight the fight. The little guy needs your help and your fearless attitude. You are good people and true Americans. We are honored to be called your friends. R.R. - Mich., Lockout & Trashout Victim
• The attorneys were very professional and I felt as though they always had my best interest in mind. Without them I would have been pushed around and just another number to the bank. N.L., Wrongful Lockout Victim
• Thank you Mr. Phillips. If we hadn't found you the [Bank] would have foreclosed on our property and I can't imagine the misery that they would have caused. S.N. - Arizona

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Breaking Legal News & Current Events

Homeowners Unaware that HAMP Drops Credit Score

March 22, 2010 - Washington, D.C. - Many U.S. homeowners have turned to the White House's home loan modification program to seek help avoiding home foreclosure. Unfortunately, Home Affordable Modification Program (HAMP) can have the unintended consequence of lowering your credit score as much as 100 points.

NYDailyNews.com reports that simply signing up with HAMP can drop a homeowner's credit score. Though this drop is not as significant as what a foreclosure can do to your credit score, the problem comes with the fact not everyone is aware of how HAMP can affect credit scores.

The purpose of the program is to allow homeowners to save their property from foreclosure by paying a lower monthly rate on loans for at least 3 months. If they successfully do so, lenders are supposed to make the rate permanent, but many are now refusing since they claim they lose money on modifications.

Even homeowners who are denied the long-term loan modification after making their 3 payments on time can have their credit score negatively affected. This is likely because banks often report to credit bureaus that the homeowner is having difficulty making payments, which reduces their score.

Considering that homeowners are simply trying to do the right thing while preventing wrongful bank foreclosure and may not be aware of the impact on their credit score when applying for modification, many are frustrated with the program.

If you feel like you have been lied to or mislead by your lender or bank, the Massachusetts wrongful foreclosure attorneys at Phillips & Garcia will fight for your rights in your foreclosure case. We are committed to protecting your best interests and your family's home and helping you collect the damages you need and deserve to move on with your life. Contact Phillips & Garcia today to schedule your FREE legal consultation - (877) 892-5620.

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Legal Help for Wrongful Foreclosure and Seizure in Any State.  Phillips & Garcia, P.C., a leading law firm in wrongful foreclosure and seizure cases, is now taking cases in any state where there has been a wrongful foreclosure, lock-out and trash-out of a borrower's home.  We are licensed in Massachusetts and associate with a qualified attorney in your state. 

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