HOPE NOW Expected To Help Numerous Homeowners Starting October 1st

The Hope for Homeowners Act of 2008 was signed into law on July 30, 2008 and since then, troubled homeowners have eagerly anticipated the rollout of the new government program designed to help them keep their homes. HOPE NOW is the alliance that has been formed to administer this program and services begin on October 1, 2008. To find out more about the requirements for this assistance, click here. You can also visit HOPE NOW's website at www.hopenow.com for more information.

The catch to this program is that lenders have to agree to write down the balances on borrower's current mortgages to below market value. The program is strictly voluntary for lenders and they can easily decide not to take part in it. Because of current economic troubles and the immediate losses they will experience, lenders may be very hesitant to allow borrowers to participate. Some members of Congress feel that the government's overall expectations for the success of this program are unrealistic. They believe most lenders will choose to offer loan modifications to borrowers before considering this new program.

The problem: lenders have already been trying to work with borrowers to help them avoid foreclosure through loan modifications such as lower rates, lower monthly payments, and refinancing. So far, it has done nothing to curb the rising foreclosure rates. Because of lender's resistance to this new program, lawmakers are considering instituting federal regulations to require lenders to be more responsive to homeowners who are in trouble. This threat may just be the incentive that the lenders need to hop on board and allow borrowers to take advantage of HOPE NOW's services.