Hope For Homeowners

HUD officials have compiled a list of lenders participating in the Hope for Homeowners program, which could help homeowners refinance problem loans into new 30-year fixed-rate mortgages insured by the FHA. There are four ways that a distressed homeowner could pursue participation in the HOPE for Homeowners program

• Homeowners may contact their existing lender and/or a new lender to discuss how to qualify and their eligibility for this program.
• Servicers working with troubled homeowners may determine that the best solution for avoiding foreclosure is to refinance the homeowner into a HOPE for Homeowners loan.
• Originating lenders who are looking for ways to refinance potential customers out from under their high-cost loans and/or who are willing to work with servicers to assist distressed homeowners.
• Counselors who are working with troubled homeowners and their lenders to reach a mutually agreeable solution for avoiding foreclosure

This Week's Real Estate Insight: Borrowers need the cooperation of their existing lender or loan servicer, as the program will only provide loans equal to 90 percent of a home's current appraised value. The holder of the existing mortgage may choose to foreclose on a troubled borrower or offer them a workout or loan modification rather than accept the losses associated with declining property values.