Hope for Homeowner Program is a Big Flop

By
Mortgage and Lending 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

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
California
Tags:
hope for homeowner
rates
mortgages
home loans

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
178,939
Mark MacKenzie
Phoenix, AZ

Yet another failed piece of legislation from Washington that was supposed to deal with the housing crisis.

They need to address the housing depression from two side, both supply and demand, and right now nothing they are doing is working.

I keep suggesting that they need to repeal that Tax Reform Act of 1986 as it pertains to passive loss and income limitations and give every American a tax incentive to invest in real estate.

 

Jan 08, 2009 07:20 AM #21
Rainmaker
202,532
Kathryn Gorham
Sun Surf Realty - Emerald Isle, NC
Emerald Isle NC Crystal Coast

Jeff, Thanks for the information. What would work in these times? It seems mometum is against progress and once something starts working momentum will pick up. But wehre to start?

Jan 08, 2009 08:02 AM #22
Rainer
12,693
Earl Johnson
Fort Lauderdale, FL

i believe the window is still open on this.  The current administration will not mandate participation, but the incoming one may do just that.  Lenders are starting to wrap their mind around the need to work with home owners in distress.  Wee may have experienced a period where Lenders were not sure if they were able to survive and as a result need stabilization... well now we have some stability and support I am holding out on HOPE that the Hope for homeowners Program will begin to make a foot print within our economy.

Jan 08, 2009 08:59 AM #23
Rainmaker
199,459
Emily Lowe
The Lipman Group Sotheby's International Realty - Nashville, TN
Nashville TN Realtor

I am hoping that the government will start to sort through things that aren't working once the new administration is in place.  I know this may be delusional on my part, but the current administration certainly has not shown me that anything they have put their mind to has actually worked!!!

Jan 08, 2009 10:47 AM #24
Rainmaker
69,926
Dean Akey
Saint Charles, IL

It's a shame that this thing isnt workinig.  I would have made it mandatory for banks to use this program before lending them one dime....

Jan 08, 2009 11:33 AM #25
Rainer
72,462
Kathy Honeycutt
Weichert/THe Presdential Company - Travelers Rest, SC
Realtor/ Neighborhood Specialist

A sinking ship will not float and the bail out was for big business and the rich, really not meant for the consumers, which however pay the most of the bills! Hope that the new President really means what he says!

Jan 08, 2009 12:36 PM #26
Rainmaker
134,415
Paul Francis
Prudential Americana Group - REALTORS - Las Vegas, NV
Las Vegas Real Estate - Summerlin Homes - 702.592.

Just got off of the phone with a home owner who first contacted us back in July and waited for this program... only to finally get tired of the hassles and the big let down. Unfortunately waiting around has cost them quite a bit...

Anybody who thinks that more government programs and more bureacracy is the solution is in for a rude awakening.

Jan 08, 2009 02:44 PM #27
Rainer
9,056
Dawn Helena Anderson
Coldwell Banker - Quality Properties - Porter Ranch, CA
Realtor Since 1998

I agree with you Jeff!  Big flop!  I have found that those facing foreclosure have obtained the original loan with stated income is a major part that adds to the problem.

 

Oh, by the way "Go Pack Go!"  Next Season. :)

Jan 08, 2009 02:54 PM #28
Rainmaker
378,807
Kerry Lucasse
eXp Realty - Nest Atlanta Team - Atlanta, GA
Your Nest Atlanta Real Estate Consultant

With all of the bail out $$ the banks received, participation in this program should have been mandatory.  BIG flop.

Jan 08, 2009 03:02 PM #29
Rainer
26,676
Amy Whiffen
RE/MAX Southern Shores - Myrtle Beach, SC
REALTOR - Myrtle Beach Real Estate

Very disappointing.  I hope something turns around soon.

Jan 08, 2009 04:05 PM #30
Rainmaker
315,445
Michael Russell
Keller Williams Realty Partners, Inc. - Overland Park, KS
Overland Park Kansas Real Estate

big flop is an understatement. In their haste to government screwed the pooch bi time on this one. At this point they should have taken the 700 billion and divided it by every taxpayer and mailed the check with a thank you note. We would all be a lot better off right now.

Jan 08, 2009 04:07 PM #31
Rainmaker
349,934
Michael Eisenberg
eXp Realty - Bellingham, WA
Bellingham Real Estate Broker

They ought to change the name to "let's hope some lender's out that want to help homeowner", most just want to help themselves.

Nice to find another Eisenberg - a distant relative possibly

Jan 08, 2009 04:10 PM #32
Anonymous
Valorie Stover

The lenders got in this mess from GREED. Why do we expect them to behave different now.

Jan 08, 2009 05:17 PM #33
Rainmaker
238,110
Angelia Garcia
Pure Realtors - Dallas, TX

Glad to know.  I am going to remove it from my neighborhood newsletter.

Jan 08, 2009 10:02 PM #34
Ambassador
1,137,717
Jim Crawford
RE/MAX Paramount Properties - Atlanta, GA
Jim Crawford Atlanta Realtor - Atlanta Real Estate

I do not know of any of the government stimulus that has worked...do you?

Jan 08, 2009 10:19 PM #35
Rainmaker
325,147
Esko Kiuru
Bethesda, MD

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.

Jan 08, 2009 11:18 PM #36
Rainer
540
Reggie Owens
Owens and Associates, Keller Williams Realty,Central Partners - Greenville, SC

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

Jan 09, 2009 12:05 AM #37
Rainmaker
120,349
Joanne O'Donnell
Chic Home Interiors - Stager, Trainer & EcoProfessional - Oakland, CA

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? 

Jan 09, 2009 12:42 AM #38
Rainmaker
134,415
Paul Francis
Prudential Americana Group - REALTORS - Las Vegas, NV
Las Vegas Real Estate - Summerlin Homes - 702.592.

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...

Jan 09, 2009 03:26 AM #39
Rainer
1,980
Carole Onasch
Portland, OR

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!

Mar 09, 2011 03:07 PM #40
Post a Comment
Spam prevention
Show All Comments
Rainer
9,868

Jeff Eisenberg

Ask me a question
*
*
*
Spam prevention

Additional Information