Hope Now Spells Hope To 2 Million Foreclosure Victims

Posted in Foreclosure Homes, September 1st, 2008 |

The Hope Now alliance has spelt hope to 2 million foreclosure victims but unfortunately the numbers paled against the numbers of new foreclosures rushing in like a flood. During the last 13 months Hope Now has achieved the impossible – helped 2 million foreclosure victims. This alliance supported by the Bush government consists of mortgage servicers, counselors as well as investors. Over 192,000 problem loans were tackled in July. It marks a 6% increase over its achievements in June.

Despite these promising figures foreclosures continue to gallop ahead. In July there were 91,752 foreclosure postings marking a 14% jump over June figures. It is more than double the number of foreclosures noted in July 2007 when 42,03 houses were foreclosed upon. Nicholas Retsinas of Harvard University commented, “Foreclosures have outpaced the efforts to combat them.”

Hope Now is also gearing itself to reach out to more troubled borrowers and to let them know that help is waiting said Faith Schwartz the executive director of the body. Hope Now has been making its presence felt through the advertising media, public notifications as well as personal letters to the borrowers who are at risk. Simultaneously it is holding various workshops across the county.

Unfortunately even after months of efforts many are still reluctant to come forward to communicate with Hope Now. Since November 2007 letters have been sent out to 1.6 million defaulters. More than 80% have not answered even after a month has gone by since receiving the letters. Faith Schwartz reiterated, “Outreach is crucial. Borrowers have to talk to their lenders. That’s the most important message we communicate.” Usually only 2% to a maximum of 3% respond as per mortgage industry statistics according to Mortgage Bankers Association. Hope Now efforts to ally with community groups and organize workshops are being well received. Borrowers get a chance to meet directly with lenders or their representatives as well as housing counselors. Since March 2008 there have been 20 such events that drew 11,500 house owners.

Last week Florida hosted many such workshops and despite the Tropical Storm Fay a record number of 3,300 foreclosure victims participated. Faith passionately said “We are committed to helping as many borrowers as possible and we’re not going to let anything, including a tropical storm, get in the way.” Twenty mortgage lenders and service providers took part in the Florida chapter of events including big names like Morgan Chase, Wells Fargo and Washington Mutual.