Hope for Homeowner Program is a Big Flop

By
Real Estate Mortgage Broker with Southern Oaks Mortgage, Inc.

The Federal Governments stimulus package that was supposed to help homeowners who are facing foreclosure and who are upside down on their homes turned out to be a big flop. The Hope for Homeowner program which is all over the governments website: http://www.fha.gov/ is having it issues. The main issue is that this program is voluntary. Lenders do not have to participate and they aren't. I've heard that one lender, Flagstar Bank is one of the few that is utilizing this program. Only problem is that they are only refinancing loans that they are servicing, so if your mortgage isn't with Flagstar, then you are out of luck. I will do my best to keep you informed of the latest developments with this program as it unveils.

Remember to visit my site: http://www.southernoaksmortgage.com/ or www.somloans.com

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Topic:
ActiveRain Community
Location:
California
Tags:
hope for homeowner
rates
mortgages
home loans

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Anonymous
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Rainmaker
325,145
Esko Kiuru

Jeff,

Whatever Washington has so far presented hasn't done much good. Either the program is voluntary or then to qualify for assistance is so complicated that no one even bothers applying. A shame.

January 08, 2009 11:18 PM
Rainer
540
Reggie Owens
Owens and Associates, Keller Williams Realty,Central Partners

I agree.  And I've seen various comments on the news,for whatever thats worth, that basically say the same thing.  A flop

January 09, 2009 12:05 AM
Rainmaker
119,850
Joanne O'Donnell
Chic Home Interiors - Stager, Trainer & EcoProfessional

This is so sad, as a consumer ( I am a stager and, frankly, don't understand all the intricacies of the issues) it seemed so shocking - the way it came up and then was supposedly resolved so quickly.  You couldn't help but feel that it was a peremptory strike, not allowing for considered thought or planning.  They assured us that without this quick action, all would be lost - so where were they 3 months before when they could have afforded a bit of consideration on the matter? 

January 09, 2009 12:42 AM
Rainmaker
134,415
Paul Francis
Las Vegas Real Estate - Summerlin Homes - 702.592.
Prudential Americana Group - REALTORS

NPR did a story on it -- well worth listening to just how big of a flop it is -->

http://www.npr.org/templates/story/story.php?storyId=98409330

No surprise that Barney Frank was part of it's creation...

January 09, 2009 03:26 AM
Rainer
1,980
Carole Onasch

Excuse me everyone....but I am a struggling homeowner who applied to and was selected by lottery in Oregon state to recieve this assistance which is really considerable! It is just now being implemented....So it is not yet a FLOP! In Oregon it is called the

Oregon Homeownership Stabilization Initiative, www.oregonhomeownerhelp.org 

and so Far a sizable list of Banks and loan servicers have joined, and are supposedly participating.

BUT....for me who is unfortunate enough to have Flagstar as my servicer....They are not (yet) participating, counter to Jeff Eisenburgs post.  This is a God send for the 500 people in Oregon who had to show much documentation to qualify...you cannot be upside down on your loan...just must prove financial distress....and there are plenty of us. These fund originate from this program:

http://www.treasury.gov/initiatives/financial-stability/housing-programs/hhf/Pages/default.aspx

So unless you are a homeowner struggling to continue to pay your mortgage...you don't know how wonderful this could be. Yes the FLOP part is that the participation is Voluntary!?!?! It should not be voluntary....the funds are there...they just need to accept them on the borrorwers behalf! Flagstar's policies and tactics of dealing with their borrower's are demeaning, and abusive! Now they are about to inflict more pain by possibly not accepting the funds on behalf of the borrowers who were selected!

That is wrong! I am wroking on this...any insight or help would be appreciated!

March 09, 2011 03:07 PM
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Rainer
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Jeff Eisenberg

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