In 2010, after more than a year of the HAMP program’s being in place, several important federal court decisions determined that there is indeed a “cause of action” (lawsuit) to be had against banks who fail to properly process a client’s application.

Repeatedly, banks are falsely claiming to have “not received documents” they requested as part of the HAMP application process, despite clients having proof they have sent the same time and time again.  Banks often fail to give consumers the time of day on the phone or in person to properly address questions or receive additional information relating to their application for a modification.

The courts have found that this sort of behavior, on the part of the banks, is wrongful and can provide for legal recourse in the courts.  If your bank improperly handled your application, a counterclaim under this law in response to the bank’s foreclosure complaint, or a separate lawsuit entirely, may help win the best possible modification.