The Basics of the Hope Now Alliance

The Hope Now Alliance is a program that was created in 2007. This program was created in response to the housing crisis and was designed to help individuals that were facing foreclosure stay in their homes. Here are the basics of the Hope Now Alliance and how it works.

Hope Now Alliance

The Hope Now Alliance is a program that has encouraged several different entities to work together. The United States government set out to work with mortgage lenders, counselors, and homeowners. The purpose of this alliance is to try to explore other options that are available besides foreclosing on a property.

Hotline

One of the key components of the Hope Now Alliance is the hotline. The alliance has a toll-free hotline set up that is accessible 24 hours a day. With this hotline, homeowners that are facing foreclosure can call in and speak to someone that is knowledgeable about the mortgage industry. They can get specific help and guidance from a trained counselor. Many times, the hotline will recommend that the homeowner contacts their lender and mention the Hope Now Alliance program. 

Loan Workouts

Another key component of the Hope Now Alliance is that they try to promote loan workouts. This means that the lenders that are participating in the program are willing to work with their borrowers in order to come to a solution that benefits both sides. If a borrower is behind on their mortgage, they can potentially negotiate a plan to get caught up on their mortgage. For example, the lender might allow them to make a slightly higher payment for the next few months to get caught up on the amount of money that they owe.

Loan Modifications

In addition to coming up with repayment plans, lenders will also be willing to do loan modifications in some situations. With a loan modification, the homeowner can negotiate the terms of their existing loan with the lender. They could potentially change the interest rate or the repayment term in order to make the loan more affordable for the home buyer. In order to get a loan modification, the homeowner is going to have to be able to prove several things. First of all, they will have to provide documentation about their income and their monthly expenses. They will also have to provide documentation about their assets. The homeowner is going to have to write a hardship letter that covers why they are unable to afford their current monthly mortgage payment. The lender will then make a decision as to whether they want to provide them with a loan modification.

Free Counseling

With the Hope Now Alliance, homeowners are able to access free counseling from qualified mortgage counselors. In order to do this, you can access the counseling from their website or over the phone. In many cases, the Hope Now Alliance also provides free event that you can attend to obtain more information.

 

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