Monday, February 11, 2008

Hope Now Alliance

You've probably heard critics on Capitol Hill complain that too many financially-stressed home owners aren't getting help from lenders to modify their loans, lower their rates or freeze them and keep them out of fore closure.
But late last week the "Hope Now Alliance" (a Washington based group convened by the treasury department and composed of the country's largest mortage servicers) fired back at the critics and said thy just down't have the facts.
Since its founding last summer the Alliance said its members helped 869,000 home owners stay out of foreclosure during the final six months of 2007, either through modifications of loan terms or through repayment plans that reschedule borrowers' debts.
Hope Now's members service 33.3 million home loans equalling about 2/3 of all mortgages outstanding in the US. Roughly 21% of borrowers whose mortgages were originated at prime rates were given some form of loan modification to help them keep their homes. Among subprime borrowers the modification rate was higher at nearly 28%.
Talk to the serivicer if you're having trouble making payments. Answer the phone call, letter or email from the servicer's staff seeking to discuss your situation.
Remember: Lenders are motivated like they haven't been for decades to work things out with you, including adjusting your payments or freezing the rate as long as you're open to trying to solve the problem.


The information above is gleaned from "Washington Report: Hope Now Alliance" by Kenneth R. Harney of Realty Times

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