The Home Affordable Modification Program was started by the federal government to throw a lifeline to homeowners who were at risk of foreclosure. First presented to borrowers in 2009, it was meant to allow homeowners the opportunity to ask for a loan modification. According to a recent report, however, it looks like those who asked for help were not always given that assistance promised.

Since the process started, four million borrowers received rejection notices after asking for loan modifications. Some experienced even bigger headaches, like the lender requesting multiple copies of documents that had already been provided.

Some of the reasons behind the failed attempt to help homeowners have to do with the design of the program. The program was voluntary for banks, and the banks were allowed to run the procedures associated with the loan modification on their own. This gave a lot of decision-making power to those banks, who did not really use the program as intended.

According to the report, some of the worst offenders were Citibank, JP Morgan Chase, and Bank of America. All of these banks turned down at least 80 percent of loan modification requests. The banks, not surprisingly, point the finger at borrowers, arguing that individuals who submitted applications never completed the paperwork or failed to meet the mandatory first payment in the modification program.

Many believe they have been wrongfully denied and are pushing back against claims from the banks that they never followed instructions. Some industry experts are wondering why banks have been given so much free reign on the loan modification programs to begin with. Foreclosure on a home can trigger serious financial difficulties, causing some people to petition eventually for bankruptcy. Are you buried under a home loan and your lender refuses to work with you? Bankruptcy may give you the fresh start you need. If you are considering bankruptcy, then contact Jayson Lutzky. Mr. Lutzky is a Bronx, NY attorney who handles personal bankruptcy cases. He has over 32 years of legal experience and offers free in-office initial consultations. Call 718-514-6619 to set up an appointment and learn what options are available to you. Visit to learn more about the attorney.