Hope for Homeowners- Sounds great doesn't it?! In theory it is- but as happens frequently, our government's best intentions sometimes are not practical.
Revisions are planned, but as of now- this is not a viable tool to help struggling homeowners who've fallen behind on their payments to keep their homes.
*If your mortgage happens to be serviced by Flagstar Bank- they are implementing this program directly. So if you or someone you know has a mortgage serviced by (payments are made to Flagstar) Flagstar and help is needed I encourage contacting them directly.
In the meantime- if you or someone you know is struggling to make their mortgage payments, or are in or close to foreclosure- here are some steps to take:
Communicate- This is frequently taken for granted but it is KEY! Contacting the loan servicer directly and asking for help is the best thing a struggling homeowner can do. There are many options a mortgage loan servicer has and the bottom line is - they do NOT want the property! In the past this was not the case- but with foreclosures sharply on the rise- this has escalated to a tremendous burden for the servicer. It is in their best interest to help a homeowner keep the home! If the servicer is contacting you as the homeowner- you MUST respond! If attempted communications are ignored this makes it simpler for the judge to rule in favor of foreclosure.
Request Proof of Payment History- If a homeowner requests proof of payment history this MUST be provided by the servicer before foreclosure proceedings can move forward. AND the loan balance must match to the penny! Right now- this can give the homeowner MONTHS in their home! In many cases the servicer is so overwhelmed, this request literally takes months to fulfill- but must be before any other action is taken towards foreclosure!
Get Free Help and Advice From a HUD Approved Counseling Agency-
http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
A positive and practical step the government has taken is to increase the staff of available agents to assist homeowners in trouble! Keep in mind, these are not attorneys, but they are trained to give advice and guidance. To find the specifics of foreclosure laws in your state use this link:
http://foreclosurelaw.org/
Beware of "Loan Modification" Companies- Loan modification- where a loan servicer changes the rate or term of the current mortgage to make it easier for the homeowner to continue making payments- is something a loan servicer has the ability to do- FREE to the consumer! Companies have sprung up overnight that offer this service - for a fee. Some are legitimate- but many are not and are out to make a quick buck! I encourage homowners to attempt this for themselves when communicating with the servicer!
Of course I will keep you updated on any further developments on the Hope for Homeowners program. In the meantime for more details on any of this please contact me directly!