HOPE Speeds Up Mortgage Workout Programs
June 18th, 2008
With the foreclosure rate in Portland nearly double last year’s pace, help (or HOPE, rather) is on the horizon for some beleaguered homeowners–at least a quicker and more orderly process for working out non-foreclosure options.
In 2007, the Bush administration stepped in to organize a coalition of mortgage servicers (including heavyweights like Countrywide, Washington Mutual, Wells Fargo, IndyMac, HSBC, and twenty or so others), and has settled on new guidelines that will inform homeowners of approval (or denial) of their mortgage workout options within 45 days of application.
Called HOPE NOW, the collection of loan servicers has agreed to a set of guidelines that offer a full range of mortgage solutions to borrowers — including repayment plans, loan modifications, short sales, and suspending monthly payments temporarily.
Critics of the HOPE NOW program say, to-date, the program has only helped about 25% of defaulting homeowners since the start of the year and is not strong enough to stem the foreclosure wave across the country. Rep. Barney Frank, D-Mass., stated,
“I supported the HOPE NOW program when it came out and I continue to think it is worth trying, but it is now clear that much more aggressive action is needed and reinforces the need for legislation to expand the FHA program to help refinance at-risk borrowers into viable mortgages.”
Frank is in support of an expansion (to the tune of $300 billion) of the FHA loan guarantee program that would refinance owner-occupied homes under certain conditions.
In any event, if you are in danger of entering foreclosure proceedings, read more at the HOPE NOW site or call 1-888-995-HOPE. In contrast to other organizations’ ‘workout’ plans, services provided by HOPE NOW participants is free to those consumers accepted.
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Entry Filed under: Mortgages, National News
1 Comment Add your own
1. Uncle_Git | June 19th, 2008 at 9:37 am
Why does it not surprise me that Barney Frank is in favor of the taxpayer bailing out his friends at countrywide to the tine of almost third of a TRILLION dollars ?
Save him 20 or 30 grand and he’ll write whatever bills you tell him.
Best government money can buy.
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