Hope Now

[Moe Bedard]

HOPE NOW Guidelines

President Bush announced details of the Hope Now initiative that Secretary Treasurer Henry Paulson has been diligently working on since August. The plan was part of deal with lenders, servicers and investors to come to some sort of “happy medium” to fast track as many loan modifications as possible.

Bush said, “The holidays are fast approaching and unfortunately this will be a time of anxiety for Americans worried about their mortgages and their homes,” Treasury Secretary Henry Paulson and Housing and Urban Development Secretary Alphonso Jackson stood diligently by his side. Calling on Congress to do its part in providing some immediate relief, Bush said the steps were needed “so we can keep the economy healthy and the American dream alive.”

The devil is in the details. So, let’s explore those devilish details

CNBC Reports;

• The plan would apply to subprime adjustable mortgages taken out between January 2005 and July 2007, with rates to rise between January of 2008 and July of 2010.
• It would apply only to borrowers who had less than 3 per cent equity in their homes and were either current on their payments or no more than 60 days behind.
• The rate freeze would not include borrowers able to handle higher payments or those unable to make payments even under their current lower rate.
• Under the plan, mortgage servicers would agree to the five-year rate freeze voluntarily.
• Mr Bush’s proposal would identify borrowers eligible for refinancing and fast-track them into new loans offered by the Federal Housing Association and private lenders.

MoneyCNN;

• The principle aim of the Bush plan is to streamline the modification process, allowing them to get fast help. Lenders will examine readily available loan criteria, such as loan-to-value ratios, loan amount, credit scores and payment history, to make a quick determination of qualifications.
• But the freeze is limited. It excludes anyone more than 30 days late at the time the mortgage would be modified or anyone who has been more than 60 days late at any time within the previous 12 months.
• Borrowers who can’t afford the loan even at low introductory rates also will be ineligible, according to Anne Canfield, executive director of the Consumer Mortgage Coalition, which represents lenders and mortgage servicers. Those borrowers will have to work with servicers on a case-by-case basis to determine if their homes can be saved.

Moe reports; (homeowner called 995-HOPE and this is what Neighborhood Works says)

• Loans cannot have already reset
• You must have *less* than 3% equity in your home
• You can not have ANY late payments 60 days or more for the past 12 months
• You have to PROVE that you will not be able to make the payments once the loan resets
• You can’t have a credit score above 650
• Must be your primary residence
• No investment properties
• No negative amortization loans

American Securitization Forum, which represents companies that issue mortgage backed securities, as well as investors, loan servicers and rating agencies, issued a 34 page document outlining guidelines for servicers to follow in streamlining refinancing or loan modifications on adjustable rate mortgages that are scheduled to adjust in the next 2 1/2 years.

ASF Executive Director George Miller said the agreement provides a common framework to evaluate borrowers’ situations, and expedites processes for loan servicers to pursue refinancing and loan modification options on a more systematic basis.

Let’s go over some of these details which now seem to be set in stone;

• Applies to first mortgages only
• Adjustable rate mortgages fixed for 3 years or less (ie: 2/28 & 3/27 ARM’s etc.)
• Only loans originated between January 1, 2005 and July 31, 2007
• Have initial reset rate between January 1, 2008 and July 31, 2010
• The streamlined loan modification approach would be begin before the initial reset and typically should begin 120 days prior to the reset of the borrowers rate
• If loan to value (LTV) or cash loan to value (CLTV) is below 97%, servicer may obtain an updated value via desk top appraisal (AVM) or broker price opinion (BPO)
• All servicers of 2nd liens “should” cooperate fully (should does not mean mandatory and can be a HUGE issue)

Borrowers will be divided into 3 segments;

1. Refinance - Borrowers who are likely to be able to refinance
2. Loan Modification - Borrowers unlikely to refinance
3. Loss Mitigation - Borrower is not current and demonstrating a difficulty in meeting the introductory rate

Borrowers in Segment 1 - Refinance

• Current - Means the loan must not be more than 30 days delinquent and must not have been delinquent 1×60 days in the last 12 months.
• Loan to Value Test (LTV) - All current loans with an LTV (based on 1st lien only) greater than 97% are deemed not eligible and will be placed in segment 2.
• Not FHA Secure Eligible - All current loans that otherwise do not satisfy FHA Securerequirements, including delinquency history, debt to income ratios at origination and loan amount standards are within segment 2

Borrowers in Segment 2 Loan Modification

• Occupancy - Borrower currently occupies the property as a primary residence
• FICO Score Test - If the current FICO score is less than 660 and is less than a score higher than the FICO score at origination, the borrowers is considered to have met the “FICO test”
• Rate Adjustment Test - The servicer determines that, at the upcoming reset, the payment amount would go up by more than 10%
• Can’t Meet the FICO Test?- The servicer will use an alternate analysis to determine if he borrower is eligible for a loan modification as well as the terms of the loan modification. This would be done on a case by case basis with a full analysis of the borrowers debt to income

Devilish Detail - For borrowers that are eligible for a fast track modification, the fast track option is non-exclusive and DOES NOT preclude a servicer from using an alternate analysisto determine if a borrower is eligible for a loan modification, as well as the terms of the modification.

To put this in homeowner terms -Lenders and servicers DO NOT have to fast track loan modifications and if they chose not to and they can do whatever the hell they want.

Borrowers in Segment 3 - Loss Mitigation

• Moe Alert - Borrowers in segment 3 will be stuck in the never ending grinding wheels of the servicers loss mitigation department and will most likely have (if they are lucky) a 1 in 100 chance of working some kind of loan workout or loan modification with their lender. In other words, much of the same ol, same ol.

[Moe Bedard]

Secretary Treasurer Paulson said, “This is no silver bullet.”

President Bush commented, “The administration’s response to foreclosure fears was designed to avoid bailing out lenders, real estate speculators or those “who made a decision to buy a home they knew they could never afford.”

House Financial Services Committee Chairman Barney Frank said, ” “I welcome it.” He then later commented, “There are a couple of problems with it. It’s a “grave error”that there’s a cutoff at a 660 FICO score,” he said. That penalizes those who struggled to maintain good credit profiles, he said. Frank also faulted the plan for failing to address the penalty for prepaying many subprime mortgages.”

Rep. Maxine Waters (D-Los Angeles) had this to say, “”We may never know how many borrowers could have kept their homes if the process had started sooner rather than later.”

“I think the plan is good in theory,” said Mark Zandi, chief economist for Moody’s Economy.com, “but, in practice, it’s going to come up short. There are too many impediments to its widespread adoption by investors and servicers.”

That makes it a “start in the right direction,”said Darla Keegan, speaking for Novadebt, a national nonprofit housing and credit counseling agency, because it will move some borrowers through the system quickly. Mortgage counseling services are currently stretched.

Bruce Marks of NACA.com says, “The number of borrowers affected by the plan is very small, but it sets the precedent and standard so that more borrowers can be helped down the road.”

[Moe Bedard]

No Hope Now for these homeowners

JacMac December 6th, 2007 at 7:56 pm - “But for now, many homeowners will have to fight the battle with their lenders or servicers one call, one fax, one headache at a time and many, will succumb to the pressure and just give up out of frustration or run out of time and face the inevitable, foreclosure.”

MOE, I think this is true. I think there are two many requirements, less than 3% equity is a joke and no neg. amor. loans is a horrible decision. I don’t like the less than 660 FICO score, and the requirement that the loan be current or less than 30 days.

All of this says to me they’ve boxed out many people who NEED the help but will, under this criteria NOT receive it.
How about the many homeowners, like myself, who were defrauded?

Amanda December 6th, 2007 at 9:19 pm - Hmm… ok so what you are telling me is that I should default on my current mortgage then so i can qualify??? Sounds good to me… Gosh, how horrible is it that this has come down to me and my husband taking every dime we make to try to keep paying on our mortgage that we adjusted a fwe months ago and we have done it. And just because our credit score is too high we can’t qualify. FRUSTRATING!!! Also, we are the ones who actually want to make our payment just not like 4200 a month like we’ve been….. really really sucky.. thanks Georgie.

AACPA - Just got off the phone with 1-888-995-HOPE and this is what I learned. Too bad they are making this program so hard to qualify for that most will not benefit.

1. Loans cannot have already reset
2. You must have less than 3% equity in your home (what the hell with this one?????)
3. You can not have ANY late payments 60 days or more for the past 12 months
4. You have to PROVE that you will not be able to make the payments once the loan resets
5. You can’t have a credit score above 650

All fine and dandy. Offer assistance to everyone and then make it impossible for any of us to qualify. I actually had some hope…and it was pretty much dashed this afternoon.

Evelyn - I am not sure this rate freeze will be for negetive option payments. If they are, and they have not made that clear, but you would have to pay the higher payment to keep from adding more negative to balance.

It sounds like it will be for the regular 2/28 loans that pay principal and interest already and have adjustments that will reset beginning 1-08 thru a certain date. Don’t know what they have planned for the pick a payment loans.

But according to the president, your rate must be due to reset starting 1-08 thru a certain time frame they listed. Also you must be current on your payments. You cannot be upside down on the loan. Also he stated they will try to refinance you under FHA or a convention loan while under the rate lock.

If you can’t refinance they may do a Loan Modification to fix your loan. This will help some facing higher payments to freeze their loan so that it does not adjust during this time frame.

But for homeowners like me, who are upside down, I owe $60,000 more than my house is worth it will not help. Also my loan was due to adjust 11-1-07 so it does not cover me. Also I am behind on my payments so it will not help me.

I got a Loan Modification approved recently and my new payment starts 1-1-08 so hopeful I will be ok.

I assume the ones who this does not cover will still be able to work with their mortgage co and request a Loan Modification on case by case basis.

[melanie13]

I am sorry but I am confused about
_You have to prove that you will NOT be able to make the payments once the loan resets?? what does that mean??

[Moe Bedard]

melanie...........you are posting on a thread that was posted a year ago...........modifications were just getting started at that time.......as was the market getting worse.........things have changed tremendously since this thread on the modification front.

[melanie13]

sorry didn't look at the dates. I am new to the forum and unfamiliar with those.

[Moe Bedard]

No problem............modifications have come along way since then...and more investors are working with homeowners than before.

[spect]

Hi.. Is there anyway you can update this post.. Like *** mentioned, "modifications have come along way", and I'd like to know what's the current status on this.. more details as to whats needed to qualify for this type of loan.. if its posted somewhere else here on the site, please just redirect me .. thank you !

[melanie13]

So I prepare everything they needed and faxed it to Chase loss migitation 2 days ago.
They wanted the usual: taxes return, bank account (12 months for me as I am 1099), property taxes, hardship letter, home insurance, monthly outgoings.
I have unfortunately not be able to pay my mortgage on time this month (due 15th dec). When I call CHASE to inform them they were really understanding, they asked me if I could try to make a payment, avoiding being a month late, I said I would try but I know I can't.
I have an appt with a HUD approved agency 1st week of January so they can help me with the process.
So far, that is the update.
I will call CHASE on monday to make sure they received everything and be on it.

[Moe Bedard]

That is a good start.................Good Luck with the modification....

Keep us posted........

[melanie13]

thank you.. will def keep you updated.

[kat10]

Hello all. Any new updates about HOPE NOW? It looks like our mod is going through them with WF....it looks like some of their requirements are way out there for the norm. some set the homeowner up for failure again.
thanks

[baguba81]

Hi all,
I'm new here but am very concerned. A company actually contacted me and said I was on Countrywide's list and Countrywide should have already talked to me.
They told me they probably lower the interest rate, possibly lower the principal and extend my loan from 30year fixed to 40year fixed. I was so excited on the phone I couldn't think straight. Then he said he would email all the forms. Everything looked good until I got to where I had to put money into a escrow account and give my credit card # and secure code. This just doesn't sound right to me. He said that if the litigation lasted for several months this would be proof to Countrywide that we had the mortgage payment.
I then called him back to see if he was legite and he told me to look on the internet and check them out. He also said Countrywide would be calling me to make another deal,but no one has called. He also told me had to have this done by March 5th and that also includes two years of taxes,pay stubs, and all the rest of the stuff you usaully need to get a mortgage loan.
Is this all for real or is he just pulling my leg. I always say if it is to good to be true, it's probably not.

Thanks
James

[Dan Bailey]

James,
DO NOT GIVE THEM THAT INFO!!!
Many Scam artist companies are using the variation of "HOPE" in their names. Some even use "government" in their scam. NO legitimate help orginization will ask for CC numbers or anything. Our financials are public record, and these companies that contact you have phished this info and use it to contact homeowners in trouble.

If you post your story in the "Tell us your story" section of the forum, we made be able to provide you with some advice/direction to take to help you get a modification.

[baguba81]

Hi,
Thanks, I won't give them anything. I was just so happy I thought it was great.
Thanks again,
James

[MPDano]

OMG, don't get me started with "Hope Now!" They are a joke. They led me on that they couldn't get through to GMAC. I spent about 6 months wasting my time with them and following up with them at least twice a week. Same answer with nothing new. Don't waste your time with them. Go directly to your lender and keep pounding on them day after day and they will finally respond.

[1gringo1]

For those of us with VA loans-a bill hr 2oo appears to have been included in hr 1106 to get the necessary authorization needed to change the legislative authorization the VA needs to modify their loans. There are a few other types of loans included in this. I asked Congresswoman Giffords office to research this and let me know when this is going to pass. Looks like The senate is going to debate this for a few weeeks. I believe they are not happy with the bankruptcy portion of the bill. As far as Hope Now-they are totally worthless. They are nothing more than a consumer counciling agency-with no authority. I went with them and al lthey do is take your information and fax it to the bank. You can do the same thing yourself with the bank with the same result.

[smcali]

Moe:

How do i start a thread or put a new post

smcali

[buz2004]

OK LOOK AT THIS!YouTube - Foreclosure Rebellion

[nrs0822]

Hello,
I have my mortgage with Indymack bank now Onewest bank, my interest rate is 5.75%since I refinance with the bank in 2006, to make my story short we received a notice from the bank of a shortage amount of $7196.00, they paid property taxes to incorrect lot # in the city of Yonkers we understood and managed to pay the bank $5000.00, well 3 weeks later they came back with another shortage amount of $12,450.00 from that amount after disputing and sending faxes to the CEO of the bank directly our final shortage amount is now $8249.00 (remember we already paid $5000.00) our mortgage payment is going to be $489.00 more, my husband is a truck driver his hours have been cut in his company since last year but we always managed to pay our mortgage but today dr advised him to take 4 to 6 weeks off work due to his sciatic pain, this only means that we are not going to be able to pay our mortgage.
Can somebody please guide us in regards of loan modification? i called the bank today and was advised to send all the info asap to them but was told that doesn't necessarily means that we will be approved?
PLS HELP US!

[daglo]

We have a loan with Indy Mac/One West.We started telling them in January that we wouldn't be able to afford our payments because my husband's income was going to be reduced in Feb. I lost my job also. I contacted HUD for a counselor to help us. We told her they told us no modification. She still told us to fill out the papers and fax them directly to her, and she would track them weekly for us. This was in April.Our lawyer told us to stop paying our mortgage, as that would get their attention, and our loan was also predatory in our state. We were terrified, as we've never missed a payment in all the 35 years we've been married. So, we just stopped paying. We also filed a complaint with the Office of Thrift Supervison through our Senator. We never gave up even when we thought we were losing! After three months of not paying and rude calls from Indy,just as we were going to file suit, we received a modification in the mail! We were shocked, as we had tried and begged for them to give us a mod. and were told time and time again that "the investor refused to modify our loan." Krisitn McLain told us that if we received a modification, it would make our payment go up. Well, she was wrong. We are saving over $1000 a month. We can't believe it. They did a creative deal to help us. The HUD counselor working with Indy Mac (who called for us weekly and submitted our mod papers herself,)couldn't believe the deal we got. I wrote to the president of the company, VP's, Office of Thrift, our congressman and Senator, HUD, do it, and don't let them win!!! The mod came from Austin, TX and the phone number there is 877-908-4357. The are much smarter and on board than the 781-7399 people, who don't know anything that is going on. They were aksing ME about the Making Home Affordable Program!! We are now in need of our second reduced so we could afford the first. They told us they are looking into that. I hope this helps you or at least, gives you some hope.

[kura52]

Originally Posted by daglo

We have a loan with Indy Mac/One West.We started telling them in January that we wouldn't be able to afford our payments because my husband's income was going to be reduced in Feb. I lost my job also. I contacted HUD for a counselor to help us. We told her they told us no modification. She still told us to fill out the papers and fax them directly to her, and she would track them weekly for us. This was in April.Our lawyer told us to stop paying our mortgage, as that would get their attention, and our loan was also predatory in our state. We were terrified, as we've never missed a payment in all the 35 years we've been married. So, we just stopped paying. We also filed a complaint with the Office of Thrift Supervison through our Senator. We never gave up even when we thought we were losing! After three months of not paying and rude calls from Indy,just as we were going to file suit, we received a modification in the mail! We were shocked, as we had tried and begged for them to give us a mod. and were told time and time again that "the investor refused to modify our loan." Krisitn McLain told us that if we received a modification, it would make our payment go up. Well, she was wrong. We are saving over $1000 a month. We can't believe it. They did a creative deal to help us. The HUD counselor working with Indy Mac (who called for us weekly and submitted our mod papers herself,)couldn't believe the deal we got. I wrote to the president of the company, VP's, Office of Thrift, our congressman and Senator, HUD, do it, and don't let them win!!! The mod came from Austin, TX and the phone number there is 877-908-4357. The are much smarter and on board than the 781-7399 people, who don't know anything that is going on. They were aksing ME about the Making Home Affordable Program!! We are now in need of our second reduced so we could afford the first. They told us they are looking into that. I hope this helps you or at least, gives you some hope.

I love this forum! Because I believe there is hope! Daglo, thank you for that boost of confidence I think we all need. Your story just proves that the MOST "no" can mean, is NOT NOW. AND TO KEEP PLUGGING AWAY, KEEP PUSHING, AND NEVER GIVE UP!

[daglo]

Originally Posted by kura52

I love this forum! Because I believe there is hope! Daglo, thank you for that boost of confidence I think we all need. Your story just proves that the MOST "no" can mean, is NOT NOW. AND TO KEEP PLUGGING AWAY, KEEP PUSHING, AND NEVER GIVE UP!

Thanks! Without this forum, and ideas on what to do for help that came from this forum, I would've given up. I will help anyway I can. I have such a large Indy file of numbers, e-mails, etc. I will share with anyone who needs them.

[IndyMac Nightmare]

daglo,

I could use your help! We too are with IndyMac, have been turned down as not qualifying "under HAMP guidelines," are at almost day 90 of foreclosure, which IndyMac started within a month of our filing for modification, after the required wait of being two months behind.

We want to submit appeal ASAP to the right folks. And we would like to find a way to halt the sale or the foreclosure process, which IndyMac filed for stating we were "unresponsive" while we were waiting for THEIR response to our mod request.

I am in CA. I will follow up on your Austin, TX contact info. Any other info?

Thanks!

[darkdays]

Originally Posted by IndyMac Nightmare

daglo,

I could use your help! We too are with IndyMac, have been turned down as not qualifying "under HAMP guidelines," are at almost day 90 of foreclosure, which IndyMac started within a month of our filing for modification, after the required wait of being two months behind.

We want to submit appeal ASAP to the right folks. And we would like to find a way to halt the sale or the foreclosure process, which IndyMac filed for stating we were "unresponsive" while we were waiting for THEIR response to our mod request.

I am in CA. I will follow up on your Austin, TX contact info. Any other info?

Thanks!

Indymac Nightmare,

Some people you should contact: eric.friedman@imb.com; brandon.latman@indymac.com; claudia.mann@owb.com; attorney(s) who filed the foreclosure on Indymac's behalf. The only thing I can say that has been of any benefit to me is that Indymac's attorneys have engaged in more communication with me than any one at Indymac. Bottom line is they represent Indymac so would not halt the sale or foreclosure process. I contacted my state banking commissioner who has requested that the foreclosure be halted so that my mod can be reviewed. I have been denied 3 times now. My state banking commissioner was given different financial information for me, no surprise there. I'm not familiar with foreclosure laws in CA. Are you a judicial or non-judicial foreclosure state? Are your state courts rubber stamping or questioning foreclosures? If you don't know whether you are a judicial or non-judicial state go to your state website and find out. I will try to see what I can learn from some google searches.