Hope Now is a an initiative intended to help borrowers who may be facing default when their mortgage rate resets. By taking advantage the this initiative, borrowers who otherwise become default on their mortgage can avoid the possibility of facing foreclosure. The most desirable part of the initiative is an interest rate freeze. The following are the steps you will need to take if you would like to take advantage of the Hope Now initiative:

1. Call 1-888-995-HOPE, the hotline is available 24 hours a day, 7 days a week. You will be put in contact with a counselor approved by HUD.

2. After obtaining some financial information, the counselor will determine if you are eligible to participate in the initiative. The initiative applies to borrowers who secured their loan between Jan. 1, 2005 to July 31, 2007 and who's rate resets between Jan. 1, 2008, to July 31, 2010. The initiative does not apply to home equity loans. You should be prepared to spend around 45 minutes on the phone.

3. Once the counselor determines if you are eligible to participate in the initiative, he/she will recommend a course of action. It can take several calls to get to this point of the process.

4. Once the counselor and you have determined the best course of action, you will need to contact the mortgage servicer to initiate this a workout plan. Due to the overwhelming amount of REOs banks are having to deal with, they are becoming very flexible in an effort to minimize anymore foreclosures.

5. If you are current on your mortgage, servicers will have more flexibility in working with you. More often then not, refinancing will be the typical solution but not the only one. If refinancing is an option for you, they servicer is suppose to help you avoid any prepayment penalties.

6. Although the interest rate freeze is what attracts the majority of people to the hotline, it only applies to borrowers who meet specific guidelines: borrowers who are current on their mortgage but wont be able to afford their payments after the rate increase and can't qualify for refinancing.

7. If you are already unable to make your payments before your rate resets, there are few options available to you. In this situation, the course of action may be to negotiate a deed in lieu of foreclosure or a short sale.

Related posts:

Avoiding Forclosure

Increasing Forclosures

Repairing Your Credit

Should you have any questions or need further information, please don't hesitate to contact me, Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
www.SellingNorthernNV.com
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

Source:
Realtor Magazine Feb. 2008