The 9th Circuit Court of Appeals has recently ruled that once a lender offers a trial modification program under HAMP, it is contractually required to offer the borrower a permanent modification, if the borrower has completed all the trial payments as promised, and as required by the lender. Up until now, lenders regularly accepted the trial payments, and then foreclosed anyway. The 9th Circuit has now ruled that this is illegal. It is a shame that lenders consider borrowers as required to make good on their contracts, but have no intention of fulfilling their own promises--even those required by law. Since the lenders actually received benefits from the government for doing those HAMP modifications, one has to wonder what the Federal Government will do now that the courts have ruled this behavior improper. I hope they treat this as an intentional breach of contract.
Read the ruling here: http://media.oregonlive.com/front-porch/other/Corvello%20v.%20Wells%20Fargo.pdf