Foreclosures have continued to rise dramatically during 2008.
According to DataQuick Information Services, California foreclosures were up by 39.4 percent in the first quarter of this year, compared to the previous quarter, and up 143.1 percent compared to the first quarter of 2007.
With this being the case, there continues to be an urgent need for the government, lenders, and investors to take more aggressive action to cure the foreclosure epidemic.
HOPE NOW is an industry alliance of mortgage lenders, servicers, investors, and counselors whose “goal is to keep people in their homes and when that is not possible, prevent foreclosure.”
On June 17, they distributed a news release entitled “HOPE NOW Adopts New Guidelines To Speed Help to Homeowners Facing Foreclosure.” Their sense of urgency is greatly welcomed.
The release indicates that HOPE NOW’s “servicer members have agreed to a uniform set of procedures and guidelines that will greatly enhance the ability of homeowners to quickly receive the help they need and ensure that the assistance process is respectful, understandable, and transparent.”
The guidelines and procedures are expected to accomplish the following objectives:
-- Greatly expedite the process of preventing foreclosures.
-- Provide guidance for dealing with second mortgages and short sales.
-- Establish a common, streamlined timetable that will be used by each member.
-- Initiate a common set of principles on the possible foreclosure prevention alternatives including loan modifications, repayment plans, partial claims, and temporary suspension of payments.
-- Establish procedures to keep homeowners informed about the status of their request.
-- Encourage servicers to reach out to homeowners and provide free counseling.
-- Include an agreement relating to second mortgages which helps clear the path for increased modifications and refinancing.
The new agreement was developed between April and June 2008. Members are agreeing to fully implement this uniform plan in 60 days or less.
The HOPE Hotline (888) 995-HOPE is available 24 hours a day seven days a week. There is no cost to borrowers for using HOPE NOW and the hotline.
In addition, HOPE NOW is coordinating a nationwide campaign to reach at-risk borrowers. So far, HOPE NOW has sent approximately 1.2 million letters, and about 20 percent of the homeowners who have received the letters have contacted their servicers.
For information about HOPE NOW and to see a list of the members of the Alliance, visit www.HOPENOW.com.
If you’re facing the prospects of foreclosure, or know of someone who is, take advantage of HOPE NOW’s efforts to continue its mission of “preserving homeownership and preventing foreclosures.”
Mike Ferguson is with Windsor Financial Services in Granite Bay. His Web site is www.windsorFS.com.