Previous posts on this Pawleys Island, South Carolina, denied HAMP loan attorney blog have briefly touched on what the Home Affordable Modification Program, or HAMP, even is. Still, in order to tell whether a person might have a good legal case against Bank of America or, for that matter, another lender, a bit more background could be helpful.

The HAMP program is part of a federal government initiative called Making Homes Affordable which, as the name implies, helps struggling and hard-working South Carolina families purchase and successfully own their own residence.

A lot like other government programs, the HAMP program works by offering incentives to private lenders, like Bank of America, to offer loan modifications to struggling families, even though under ordinary circumstances, the lender would not be in a business position to agree to help a struggling family and would instead start the foreclosure process.

The program has strict guidelines that apply to both those families who ultimately benefit from it and the banks who are agreeing to make modifications. However, the basic idea is that a family needs to be able to prove that they are facing an actual financial crisis and, with a reasonable modification in the terms of their loan, they would be able to continue to make payments.

For its part, the government audits banks and will enforce the guidelines in place by penalizing violations. However, those families who have been wrongfully denied a HAMP loan, contrary to the guidelines in place, may also have some legal options available to them in order to get justice.

Because this area of the law is quite complicated, though, it is usually a good idea to get the help of an attorney should a Pawleys Island family feel that Bank of America did not act properly when they denied them a HAMP loan.