Mortgage Modifications Drop But Mortgage Workouts Rise in HOPE

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HOPE produced mixed results in the month of June. On the whole thought it seems like June was a better month for the government foreclosure and debt management counseling service.

HOPE Now program provides counsel for home owners in risk of losing their homes by providing specific advice and debt management workouts to refinance mortgages and arrange loan modifications.

The statistics provided by HOPE NOW itself show a decrease of 5.1% in the overall mortgage modification activity, although, as HOPE itself explains this might be due to the way the statistic is calculated. Apparently for a person to qualify for a loan mod they must undergo a trial period of three months. These pre-loan modification trials do not qualify as loan modifications but are categorized as “trial modification” or “repayment plans” all of which seems to screw the figures a little.

The executive director of HOPE NOW Faith Schwartz is reported as saying: “I am proud of the continued progress made by HOPE NOW servicers and am confident that they are aggressively and proactively using HAMP, as well as other successful foreclosure prevention programs, to help as many homeowners as possible”.
The positive figures Schwartz is referring to are the 310,000 homeowners that completed home mortgage workouts during the month of June, which signifies a 25% increase from the month of May.

All of this occurs in a context where government is flexing its muscles to accelerate loan modifications nationwide providing more incentives for banks to accept (and fast) loan modifications and mortgage refinancing.

If you feel you are in danger of losing your home because you are struggling with your monthly payments contact HOPE NOW for a personalized analysis of your situation and practical help to negotiate and work out your loan modification. It is vital to take advantage of this and other mortgage modification counseling services earlier rather than later as it is much easier (and profitable) to negotiate with a lender before you become a delinquent borrower (i.e are behind in your payments) as you have a much stronger hand when settling and negotiating the outstanding debt.
You can get this free service by calling 888-995-HOPE (4673). Make sure you have your basic mortgage documentation close by as you will be asked some questions by the operators in order to assess your situation.

Beware of current scams that ask for payment for this service, HOPE NOW is a free government aid program that does not request any kind of payment.