Hope Now: Support & Guidance for Homeowners in Trouble

What is Hope Now?

As I was browsing the WSJ this morning I found an article about a new group called Hope Now. Apparently Hope Now is a cooperative effort between counselors, investors, and lenders to maximize outreach efforts to homeowners in distress. The alliance members include many of the leaders in their respective industry and includes the likes of Homeownership Preservation Foundation, NeighborWorks America, Bank of America, Citigroup, Inc., JPMorgan Chase & Co., Fannie Mae, Freddie Mac, American Bankers Association, Mortgage Bankers Association, and many others. The main goal is to provide assistance and resources to homeowners who are either in trouble or are facing future problems with their sub-prime mortgages when they reset.

Hope Now is Working with the US Treasury to Freeze Sub-Prime Rates

According to the Wall Street Journal they are also in negotiations with the US Treasury Department to temporarily freeze sub-prime mortgage rates to keep them from resetting. The goal is to help people stay in their homes and provide confidence to investors anxious about the spiraling mortgage problem and possible recession. Obviously the banks have their own interests to protect along with the interests of the sub-prime mortgage holders but if they can work out a deal it could go a long way in helping those who may be facing foreclosure when the loans reset.

The Sub-Prime Crisis will affect everyone. Will Hope Now Ease the Burden?

The sub-prime mortgage crisis and subsequent foreclosure crisis could continue to cause huge problems for the entire US economy if something is not done. While the mortgage banks and lenders are not the only reason for the recent meltdown they do share part of the blame. They were willing to give mortgages to people who had no business getting them. Now everyone is paying the price and everyone involved needs to be a part of the solution. I am not sure if Hope Now will be the ultimate solution but it is a step in the right direction. The myClosingSPACE.com blog will continue to keep an eye on this and follow up with any news.