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  • Ryan A. Hamilton, Esq.

Did the bank fail to honor your principal reduction you received as part of a HAMP modification?

Did the bank fail to honor your principal reduction you received as part of a HAMP modification for your mortgage loan?


Many homeowners qualified for principal reductions as part of their HAMP home loan modifications. Banks promised many homeowners incentives such as principal reductions for remaining current under the new loan for a certain amount of time. For example, many trial period modifications promised homeowners that if they kept their modified loan in good standing for the first three (3) years, the bank would reduce the principal balance of the loan X amount of dollars per year on the anniversary of the first three (3) years.

For reasons that are unclear, banks sometimes failed to actually reduce homeowners' principal balances even though the homeowners kept the loans in good standing. In other words, the banks breached their obligations under the agreement. Obviously, this makes a great deal of difference to homeowners - it could mean more than $100,000.00 in principal balance that a bank simply failed to reduce.

If this happened to you please call Hamilton Law to discuss your situation. You may have a lot more equity in your home than you realize if the bank made this mistake.

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