Even though I am now a Real Estate Agent - Many people I know are aware that I am a former Recruiter and still come to me about questions around employment, or most recently UNEMPLOYMENT. Many people are asking me what they can do about making their mortgage payments to prevent foreclosure now they or their spouse is unemployeed. Below is a bit of HOPE.
What Is HOPE NOW?:
HOPE NOW is a cooperative effort between the government and lenders to help homeowners who may not be able to make higher mortgage payments after their interest rate resets. HOPE NOW works with 26 lenders, which represent 70% of all lenders, and 90% of subprime mortgage lenders. In December 2007, HOPE NOW members agreed on a set of industry-wide standards.
Between July 2007 and December 2008, HOPE NOW helped 3.2 million homeowners avoid foreclosures.
How Can HOPE NOW Help You?:
HOPE NOW counselors can help a borrower learn how to talk to their lender about negotiating a loan workout. This could result in a loan modification, which is when the bank agrees to an alteration in the original loan contract. This would mean a reduction in the interest rate, forgiveness of a portion of principal or extension of the maturity date of the loan.
The other option is a repayment plan. This would allow the borrower to become current and catch up on missed payments that are appropriate to the borrower’s circumstances.
Either result is better than just allowing your home to go into foreclosure.
How to Contact HOPE NOW:
To contact HOPE NOW counselors, call 1.888.995.HOPE. This will connect you to a counseling organization. The counselors provide borrowers with in-depth debt management, credit counseling and overall foreclosure counseling. All counselors are HUD certified and services are free of charge. They will help you understand your situation, identify your options and help you work with your servicer to hopefully find an alternative to foreclosure.
You can also visit a HUD certified counseling agency in your state.