Relief for homeowners struggling to make mortgage payments- Learn about the Hope for Homeowners Progam

Filed Under (Mortgage and Lending) by Editor

Hope for Homeowners?

If you are having trouble making your mortgage payments, like so many other Americans right now, you might want to learn about the Hope for Homeowners program created by Congress to help borrowers at risk of mortgage default and foreclosure. The program helps lenders refinance borrowers loans at fixed and hopefully lower rates.

The program was created as a response to the mortgage crisis and intends to help the foreclosure problem plaguing the nation. The program started in early 2008 but was modified in 2008 to help move the plan along. Modifications made in November 2008 include:

Increasing the loan to value ratio (LTV) to 96.5 percent for some H4H loans;

Simplifying the process to remove subordinate liens by permitting upfront payments to lienholders

Allowing lenders to extend mortgage terms from 30 to 40 years.

In my research I’ve found mixed reviews about the program. While the U.S. Department of Housing announced the program is in effect October 2008, many homeowners report not being able to find out anything about the plan from their lenders. One catch is that the lender must participate in the plan and be willing to work with you to refinance your home. Take this case for example posted in the Charlotte Observer.

For anyone who needs more information I would recommend contacting you lender. Otherwise, here is the most recent list I can find of participating lenders.

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