There is not any room for not being depressed when you're faced in a foreclosure situation after purchasing Arlington Virginia real estate. Unfortunately, this is one of many not likely facts that you'll face in the real estate world. Actually , with the way that the economy is doing at this time, it's not awfully tough to understand why are there so many families suffering from the downfall of losing their hard earned properties because they don't seem to be able to carry on with the payments of their mortgage or so.

When you are faced in this kind of scenario, the very first thing you can ever think of is to find an institution that may help you save your property. Of course, there are firms who are there to help you out. But unfortunately, there are an equal number of companies whose aim is to eat people who are desperately short of help. These corporations are what we call the ones who commit foreclosure scams and crimes.

Sad to say, fraud companies who are into foreclosure scams are starting to increase in number day after day. It could be a bit tough to differentiate the real ones from the ones who swindles. But just in case you want to know, these are some of the helpful tips regarding how to spot and somehow will make you suspect twice if the company you are handling is fraud.

Ways To Spot A Trick

Your first step to check the corporation's credibility is to test if it is registered and recognized by the government. One page to take a look at the lawfulness of a company is HUD’s. You can search by state or by zip code to work out if the name of the company you are coping with is a legitimized business or not. If they aren't listed, then chances are “you are dealing with the incorrect one.

When a real estate company approaches you and offers you schemes and solutions that they assert will immediately finish all of your Problems, then that is a large sign that they're up to something no good. Most frequently than not, these firms will tell you too good to be true solutions regardless of whether you know that at back of your wits these are far from being possible. When you're faced with these sort of people, confirm not to sign anything and never reveal any information of your home to them. The more information that they know, the more chances for them to give you irresistible rebuttals to each refusal you make.

Another hard fact that will define a foreclosure scam company is when they need a charge from you. Be sensible not to turn over a check if there isn't any work done yet. Private companies may require a fee, but attempt to eliminate those who need tons of greenbacks for a job that's awfully minimal. Try to check several firms first before deciding on which company to work with.

Due to the poor economy, a lot of homeowners are on the verge of having their homes foreclosed on. The fact is that even with the help that is available, times are tough and one missed paycheck is all it could take for you to lose your own. Do what you can to avoid it so that you do not have to face the foreclosure consequences.

The biggest of the foreclosure consequences is that it will be a long time before you can ever be approved for another home loan. What this means is that you will be renting long-term. This is certainly unappealing for most people and you will want to do whatever possible to prevent this from happening to you.

Additionally, your credit score is going to be much lower than it was before you lost your home. It will affect your ability to get other types of loans that you may be in need of, including car financing opportunities or personal loans. Even if you applied for a gas card, the chances of getting it are very unlikely after you have gone through the process of foreclosure on a home.

Other effects that you may feel include having your children hurt that they have to give up their home, as well as not being able to take your pets with you to a rented home. In your own home, you can have as many pets as you want. Once you get into a rental situation, you are at the mercy of the landlord. Unfortunately, with so many foreclosures, the number of pets in shelters have been on the rise.

If you are at risk of losing your own home, you will find yourself thinking about all of the above things, as it is a difficult thing to experience. If at all possible, you will want to do everything possible to avoid it. The truth is that there are so many foreclosure consequences that you may not even be thinking of, but when it happens, it will be too late to do anything about them.

Foreclosure Defense Attorney - Assisting Families Avoid Bankruptcy

The last few of years have been quite sickly for the real estate industry. Homeowners are facing foreclosure and losing their dwellings. According to statistics, in Broward 4% of all the mortgages are entering foreclosure proceedings. It is obvious that the situation is really lousy; however, a homeowner can seek the system. They are not knowledgeable of the fact that there are solutions available to them that can help them end foreclosure proceedings.

Loan Modification

A specialized foreclosure defense council can lay out the options available to owners who are facing foreclosure. Under the Housing Bill passed by President Obama, homeowners facing foreclosure can go for loan modification. Aid of a foreclosure defense council can help a homeowners negotiate the mortgage modification with the lenders.

Short Sale

Still another option that owners have is that of short sale. Under this option the property owners will sell the mortgaged property for less than balance owed on the loan. The proceeds of the sale are given to the mortgage holder. Before the sale, the short sale council will negotiate with the bank. The short sale lawyer will convince the bank that due to economic or financial hardship, the bank should agree to a discount the mortgage balance. Therefore, after the dwelling is sold the remaining balance is discounted.

Deed In Lieu

Another way that a owner can avoid foreclosure is by opting for deed in lieu. The home-owner’s property attorney will negotiate with the lender. The owner will sign over the deed or title of the property to the bank and the bank in return will cancel the mortgage.

Bankruptcy

Another option that a lawyer can suggest to a homeowner is that of filing bankruptcy in the event they already have gotten a sheriff’s sale date. This will not only stop all foreclosure proceedings but will also give a chance to the owner to repay some of the debt and retain the dwelling.

Refinancing

A Florida council can also suggest the option of refinancing to avoid foreclosure. Refinancing simply means that the homeowner replaces the existing mortgage with a new one. In most cases, the new mortgage comes with lower interest rates and better terms and conditions.

Reverse Mortgage

A very good deal that a foreclosure defense council might suggest is that of reverse mortgage. This is simply a loan against the house. A property owner does not need to repay the loan as long as he/she lives there. However, this option is mostly available to those who own the property and are over 62 years of age.

Contesting Foreclosure

In many cases it has been seen that property owners can successfully contest foreclosure proceeding. A foreclosure defense fort Lauderdale lawyer can help property owners find the legal grounds on which the proceedings can be challenged. It might be possible that the mortgage lenders has filed the foreclosure proceedings illegally. A cautious attentive property owners with the help of a foreclosure defense Broward attorney will be able to figure out what is illegal about the proceedings.

The bottom line is that there are many options available to property owners to help them avoid foreclosure. It is up to the owners to seek these options. A foreclosure defense attorney will act as a specialist guide in their efforts to end foreclosure.

Mortgage and foreclosure help is available and theres practically nothing more aggravating and more heart breaking than the thought of losing your home since you can no longer keep up with your mortgage payments. One out of seven of homeowners in the United States are living with this agony,the sad part is many already think its too late and end up losing their home since the did not get the home loan help that could have stopped the foreclosure.

Most of the time however thats not the case.

However bleak your monitory situation may be, you still might be able to avoid having your bank foreclose on your land. And foreclosure is something you definitely want to stay away from and you must stop foreclosure. When you have a foreclosure on your credit file, your credit rating will be severely damaged so much that you will have a hard time to find property owners who will let you rent from them. There are ways to get foreclosure help and stop foreclosure, We will go over it|them|options in this article.

If you’re having a difficult time keeping your head above water: Since a mortgage broker led you to buy more home than you could purchase and told you you could “just refinance” once the rates went up, or because you got pushed into a bad mortgage loan that has interest rates rising exponentially every time your A.R.M adjusts on you consider the following tips, Also consider some of the valuable resources at the bottom of the page.

1. Face the difficulty. Don’t let the mail from your mortgage lender collect up without viewing it, Some of those mails have to be responded to within a certain amount of time. Start answering to your letters fast, you could be sent to great foreclosure stop programs. Thats what you want and it’s not a terrible thing. Working in this firm I have so many credit and home advisor’s tell me they get approached often unfortunately enough by homeowners who loafed for months to stop ignoring the problem and get relief. By that time, though, many of them had already received foreclosure notices in the mail, There is help if you have gotten a foreclosure notice in the mail though.

2. Contact your lending company and explain your situation. This idea may terrify you to death ” but do it anyway. Heres why: The problems do count and depending on your issue, your mortgage lender may lower your interest rate, lower your monthly bill and stretch out the loan over a longer period of time to make it more affordable, If this works great, however keep in mind you will be paying more in interest in the long run, or agree to a repayment plan for any payments you’ve missed. This wont happen in every case,most of the time when they set a repayment plan for the missed payments its still to costly to pay back. You will stand a far better chance of getting this kind of mortgage aid from your mortgage company if you contact the mortgage corp early in the game rather than later. Finding the correct lender to call may be the biggest challenge, though. Mortgages get sold over and over again so the difficult part is to figure out who the lender if you contact the mortgage lender is. Start out by calling the company that collects the payment for the lender. Most mortgage servicer’s are refusing to accept even full payment after a certain time period passes. There still is mortgage aid for you if your in that position.

3. Know the mortgage rights you have. get out that mountain of mortgage papers you got when you bought your dwelling. Start by looking them over for an answer to: What can your lender do to you if you can no longer make your mortgage note? having this documentation will allow you to have smart and knowledgeable negotiations with your mortgage corp about your problem. You also need to educate yourself about the foreclosure laws / time frames in your state. Find out if you live in a judicial or non judicial state. If you are in a non judicial state you have a considerably short time frame to save your home.

4. Try sell your home. It may be a difficult decision, however it’s most likely the best decision if you purchased more house than you can afford. Selling your dwelling is much better than having your home foreclosed on and being evicted, Besides the dough from the closing probably will cover your mortgage bills and selling costs. Even if it will take months to sell your home, The thought of selling could lower your stress right away. I will explain why: The mortgage company most-likely will stop foreclosure proceedings on you once your home is actually on the market, keeping your credit rating. Your lender may even let you to stop making mortgage payments till the home|house|dwelling is sold as long as you keep it in good condition.

5. Look at the short sale or deed in lieu of the foreclosure options. A short sale is that your dwelling can only be sold for a dollar amount thats less than the total balance you still owe on the home. If this is the story, the lender might agree to a short sale, now that only means, the mortgage lender|lender will take what you can get for the house and in some cases forgive|drop the rest of the balance owed most of the time you will end up with a huge deficiency judgment and the full taxes. Or, if you cant get anybody to buy the house, the mortgage lender may allow you to do a deed in lieu of foreclosure. What this means its like a voluntarily repossession and affects your credit the same way, you give the deed to your house to your mortgage lender, and your lender cancels out the remaining balance. Once again this is less damaging to your credit than losing your home in a foreclosure. In either case, it would be a good idea to get help from a lawyer that specializes in mortgage mitigation and taxation

6. Don’t lose your money to bad people. You may be approached by loan mod corps that offer to negotiate with your lender for you. Don’t believe it for a minute! In a perfect place, the corp will be legitimate but will charge a lot to help you for something you could or have already tried to do on your own and already did not succeed. In the worst scenario, you could end up signing over your dwellings title to a bad company and lose everything in a foreclosure rescue scam. Only do business with a law firm that can really get the job done and is registered with the bar association. The BBB does not regulate lawyers since they are regulated by the Bar Association. Also to make note The BBB can’t really help you if you fall victim to the worst case scenario.

7. Seek out real help. Considering how many fraud artists have emerged during the mortgage meltdown, it can be hard to know where to go. Here are some options to try that aren’t scams:

* You can contact a housing counselor who is approved by the U.S. Department of Housing and Urban Development by calling (800) 569-4287 or visiting this site. HUD-approved advisers|counselors can give you free or low-cost guidance and even represent you in negotiations with your mortgage corp.

* Another idea is to get aid from a housing counselor affiliated with the National Foundation for Credit Counseling by calling (866) 557-2227.

* You also could be directed to HUD-approved aids and free help via the Homeownership Preservation Foundation by calling (888) 995-HOPE.

* too many of these programs most people do not qualify and this is when you go with a Law Firm to do mortgage mitigation|negotiation|modification for you and keep you in your home. I have found from a lot of sources that the Law Offices Of Thomas.W Dvorak Is a good inexpensive Firm (888) 811-9790

8. Set money priorities that fit your current issue. When you’re feeling completely overwhelmed in the pocket, it can be hard to know what bills to pay first. The main thing to keep in mind: keep your home or to walk away from your dwelling on your own terms to ending foreclosure really should be the highest priority. You need to keep|maintain a good relationship with your mortgage lender and thats the relationship to keep above all others. While speaking with your mortgage lender, you can demonstrate how adamant you are about correcting your mortgage issue by showing that you have sold assets, got and 2nd job and have gotten rid of luxury monthly expenses such as cable T.V, water delivery , Etc, all with an aim toward getting your mortgage loan reinstated and stop foreclosure.

9. Consider filing for bankruptcy protection. Some people wait until they get a sheriff sale date and most of the time its to late unless you get a law firm to file for you. This is final tactic to be sure, it still might be better for you than foreclosure. With a foreclosure, your home will be taken away from you, You get evicted sometimes at gun point and your credit rating will be seriously wrecked and you’ll still owe all the other debts.This can make it very difficult for you to find even a rental apartment gain not alone buy another home again. A bankruptcy also will harm your credit for years to come, however here are the true differences: You’ll be completely solvent and debt free, and with bankruptcy depending on what state you live in you may be actually able to stay in your home.

10. Keep your self esteem. Try hard not beat yourself up right now. This is a time to keep your head, take control of your issue. Know whats going on in the economy your not the only person in the USA who’s having it hard right now. Direct the anger and bad feelings toward persons who might deserve it, for instance, The predatory lender who may have put you into a bad loan, The mortgage broker who told you you could simply refinance when the rates went up on your A.R.M

Due to the bad economy, foreclosures have become a big problem in the United States. This problem affects not just citizens of the States but virtually everyone in the world. The reasons for this downturn in the economy can be traced to many things such as greed, sky rocketing real estate, unemployment and the shaky stock market. These factors have helped contribute to the massive foreclosure crisis that the country has, it is important for homeowners to know their rights if they are faced with the problem.

It is true that homeowners have options when faced with foreclosure. They first need to decide if they actually want to keep or sell the house. Can they afford to live in it anymore? Sometimes things happen in life that prevent us from having everything we want, being happy with what we have is always best. Once the decision is made on whether it should be sold or not, then they can move on with what to do and how to handle it.

You may also consider selling the property. If you make money on the sale, you could use the cash to buy something cheaper or rent somewhere to live, the choice is yours. You would just need to make sure you do it in enough time so that it does not go into foreclosure.

Of course, as mentioned, selling the property is always an option, they will be able to keep the money made from the sale and put it towards another house or possibly rent a house or apartment. If selling the property, it is important to continue to make payments on the mortgage.

Homeowners have options when they face the dilemma of foreclosure. It is not an easy thing to go through and could change your life forever. It is important to do your homework and be aware of what is going on and what could happen.

If you are facing foreclosure you are not alone. Thousands of people have lost their homes to foreclosure in the last year and thousands more will face financial hardship leading to foreclosure before things balance out.

The Mortgage Melt-Down

The increase in foreclosures began with the subprime mortgages that ultimately led to the mortgage melt-down. Many are placing the blame on the mortgage industry; however, no one could have predicted this. The adjustable rate mortgages, known as ARMs were one example of creative financing methods that were great for some people. The benefits of this plan included 100% financing at a low interest rate that was only fixed for 3 years. The plan was to refinance before the ARM reset and rates were increased.

Unfortunately, the economy took a devastating turn; unemployment was up and real estate values declined. When people lost their jobs and were unable to keep up with their mortgage payments, this meant that they would not be able to qualify for a new mortgage to refinance their home. Those who were fortunate enough to keep their jobs were also unable to refinance because their home lost so much value that they owed more on their mortgage than the home was worth

The Foreclosure Crisis

The devastation continues as people are walking away from their homes. Investors are taking a huge loss and mortgage guidelines are getting strict. Even people with very high credit scores are finding it difficult to get a new, fixed rate mortgage.

Unfortunate things happen to responsible people. Foreclosure is painful, no matter what the cause. People who face losing their homes to foreclosure feel helpless as they wonder who to turn to for help. Many are tired of the phone calls and letters from their mortgage companies demanding payment.

To make matters even worse, distressed homeowners are flooded with mail from companies who promise to help with guarantees to save their home or stop the foreclosure process. There are reputable foreclosure consultants who offer solutions, but most of the companies who approach people that are in default on their mortgages are offering a scam. They charge outrageous fees and perform little or no service. These predators can get your name from the legal news or a foreclosure list that they have subscribed to.

Foreclosure Help

Now that I have explained how we got into the foreclosure crisis, I will cover some of the options available to you. One is to just walk away. Though many people are doing this, it should be your last resort. A foreclosure is very damaging to your credit report and it is one of the items that take the longest time to be removed from your credit history. There are cases where this is your only option, but there are others to consider as well.

Some people are able to negotiate a mortgage modification plan with their lender to make their mortgage more affordable. The lender/servicer may agree to reduce the interest rate or extend the mortgage term. In some cases, lenders have been known to stop the foreclosure process and write off late fees, accrued interest, escrow shortages and even some of the principal. They might allow the borrower to start over with a whole new mortgage. Years ago, this was not common; however, things have changed drastically and so have lending practices.

You might list your home to see what people are willing to pay in todays market. It is likely that you will not get an offer that will cover your balance owed as market values have declined. If the lender is willing to accept a short sale, then this is a much better option than foreclosure. In a short sale transaction, the lender accepts less than what he is owed because he knows that as values continue to decline, hell take a larger loss if he lets the foreclosure run its course. By the time the redemption period is up and the homeowner is evicted, the house will continue losing value and may not sell at all.

Homeowners can negotiate with their lenders to reach a solution; however, many do not know how to go about it, or they are just too stressed out and emotionally drained to handle the task. It is important that you know what to say and how to present your case so your lender will be willing to cooperate. There are reputable companies who provide these services for a reasonable fee.

There was a time when vacant, board-ups were few and far between; now we see several empty homes on every street in many neighborhoods. It doesnt matter if were in lower-class, urban areas or in the middle to upper-class neighborhoods; there are many empty houses that are difficult to sell.

Declining real estate values and the troubled economic times have forced many responsible people to be at risk of losing their homes. Unemployment, pay cuts and the decrease in job benefits has caused millions of homeowners to face foreclosure; millions more are expected to struggle before things improve.

Though the crisis seems to be temporary, something still needs to be done to assist distressed homeowners. Sure, we will find a balance as prices continue to decline and the demand for real estate goes up, but until then, we need to decrease the number of foreclosures which add to the problem.

Vacant homes, littered with debris, are an eyesore to the neighborhood and a danger to the community. Children and teens find these empty houses attractive as they go in to explore or play. They can be injured or, heaven forbid, fall victim to predators who may be waiting inside or force them inside.

New Programs Provide Hope for Homeowners

The Obama Administration launched several new programs in March, 2009, to offer assistance to as many as 9 million homeowners who continue their effort to make their mortgage payments. The plan is to reduce the destructive impact of the housing crisis on families and communities. The Making Home Affordable program was designed to support a recovery in the housing market and ensure that responsible homeowners will be able to continue making their mortgage payments.

This program brings together government, mortgage holders, investors and homeowners to share the responsibility toward preventing more Americans from losing their homes.

New Home Affordable Refinance Program

This program is expected to help about 5 million responsible Americans refinance their homes by reducing their interest rate; therefore, reducing their monthly mortgage payment. Under this new program, homeowners cannot owe more than 105% of their homes current market value. Though many people paid at least 20 percent down when they purchased their homes, and some people are in the habit of making extra principal payments on their loans, many still have trouble refinancing because values have declined sharply. The Obama Administration has launched this program to help responsible homeowners, whose loans are guaranteed or owned by Freddie Mac or Fannie Mae, refinance their mortgage to make their home more affordable.

The Home Affordable Modification Program

It is anticipated that this $75 Billion program will reduce foreclosures and help responsible families keep their homes by modifying the terms of their mortgage as the Treasury Department cooperates with federal agencies on a comprehensive, multi-part strategy.

The Home Affordable Modification Program is expected to help millions of homeowners who struggle to make their mortgage payments, but are unable to refinance due to declining real estate values. So many responsible homeowners have found themselves upside-down with their homes being worth far less than they owe on their mortgage. It is hoped that this program will provide security for families and stability for communities hardest hit by foreclosures.

The beauty of this program is that it brings together all parties involved, including lenders, investors, servicers and borrowers and the government to share in the cost of ensuring that responsible homeowners can afford their monthly mortgage payments. This will result in reduced foreclosures and to avoid further downward pressures on overall home prices.

How it Works

The Treasury will partner with financial institutions and investors to reduce homeowners monthly mortgage payments.

Provided the lender agrees to a loan modification, the borrowers payment will be reduced to a level of no more than 38 percent of their income.

The Treasury shares the costs of reducing the payment further, from 38% of the borrowers income to 31% of the borrowers income.

The modified payments are kept in place for 5 years. After 5 years, the interest rate can be gradually increased by 1% per year until it reaches the capped rate in place at the time of the modification.

In order to reduce the monthly mortgage payment, the lender can agree to an interest rate as low as 2% and/or a mortgage term extended to up to 40 years. If the monthly payment still does not reach the target amount, the principal can be reduced; this is a last resort.

Lender Incentives to Cooperate

Lenders and servicers will be awarded $1,000 for each loan modification which meets the guidelines established under this new plan. They will also receive an additional $1,000 per year, for three years, if the homeowner is successful in maintaining the new agreement.

Servicers will be offered similar incentives if they modify FHA, VA or Agriculture Department loans, or refinance loans according to the Hope for Homeowners or similar FHA programs.

Studies have shown that modifications are more successful if they are done before borrowers are behind in their payments; therefore, incentives are being offered to lenders who cooperate before the mortgage is in default.

Hopefully, things will begin to improve as homeowners take advantage of these new programs. Preventing foreclosure will result in stabilizing areas already suffering due to vacant homes.

The multitude of recent news reports out of Washington results in a lot of questions concerning President Obamas plan to reduce foreclosures. I will attempt to minimize this confusion by briefly explaining the highlights of Obamas plan. The government estimates that this plan will assist up to nine million distressed homeowners. As the Mortgage Bankers Association indicates that there are about 51 million first mortgages in the US, this means about 18 percent may qualify for this program which was launched in March, 2009. This is a summary of a very detailed program which you can learn more about by going to the US Government website at financial stability.gov.

The serious matter of foreclosure has caused enough stress without the annoying number of acronyms being applied to the subject. Even real estate professionals and mortgage specialists are overwhelmed with these government acronyms, including TARP, TALF, H4H, GSE, FNMA, FLHMC, PITI, FHA, VA, USDA, just to name a few! Unfortunately, I must make use of them throughout this article as they are widely used within the industry.

There are essentially 2 parts to the program: The first is a plan to refinance eligible mortgages and it is being referred to as Home Affordable Refinance. The other part deals with loan modifications and is known as…Home Affordable Modification. Its just a matter of time until these are called HAR & HAM I am predicting.

First the HAR (Home Affordable Refinance):

The current mortgage must be owned or guaranteed by either Fannie Mae (FNMA) or Freddie Mac (FLHMC). If you are not sure if your mortgage meets this first requirement, you can call (800) 7FANNIE or (800)7FREDDIE between 8am ” 8pm EST. The property MUST be your primary residence. Second Homes and Investment Properties do not qualify. The borrower(s) have sufficient income to qualify. The mortgage must be up to date with no 30 day delinquencies in the last 12 months. The first mortgage cannot exceed 105% of the current market value. Example: If the property is worth $100,000, the maximum that can be owed is $105,000. If there are additional mortgages (Second Mortgage, Home Equity Line of Credit, or other liens), the other lien holders must be willing to subordinate their liens in writing to the new first mortgage. Subordinate simply means that the first mortgage will retain its superior lien position. It is OK if the total owed exceeds 105% of current value, as long as the first mortgage refinance does not exceed the 105% rule. The program officially started 3/4/2009.

A Summary of the HAM Program:

To be eligible, the Lender must be willing to participate. Investor/Lender & Servicer participation is voluntary on their part. The intention of the program is to avoid foreclosures whenever possible. Each case is evaluated separately and borrowers must prove that they can afford the modified payment. There must be a steady source of income to be eligible. There must be a documented financial hardship to qualify. The current monthly PITI (Principle, Interest, Taxes, & Insurance Total) must exceed 31% of the borrower(s) gross monthly income. No jokes allowed about the PITI acronym. The borrowers do not need to be current on the monthly payments. Again, each situation is unique and will be evaluated on a case-by-case basis. The goal of the plan is to reduce the total housing PITI payment for all mortgages to no more that 31% of gross income. This includes any second mortgages or HELOCS who must be willing to participate and subordinate their liens to the new modified mortgage. The subject first mortgage must be for the Borrowers primary residence. Second homes and investment properties are not eligible. The subject mortgage must have been made before 1/1/2009 and it cannot exceed $729,750. I am sure there is a reason that they used $729,750 as the maximum, but I cannot find any information about how the government arrived at this amount. The payment reduction will be achieved by reducing the interest rate, extending the term of the loan, or by a principle reduction (last resort). Remember, this is voluntary on the lender/investor and/or servicers part. Modifications are for a 90 day trial period. If the borrower(s) honor all of the terms during the 90 day trial, then the modification will be extended for a term of no less than 5 years. Beginning in year 6, the interest rate can be increased by no more than 1% per year until the note rate reaches the Freddie Mac Primary Mortgage Market Survey Rate on the date that the modification is executed.

This is a brief summary, highlighting the terms and conditions of these new programs. For more information, you can visit the website at financialstabiltiy.gov.

Lets all hope that this new initiative is more successful than the Hope for Homeowners Program (H4H) that started October 1, 2008. The following article was published recently by Time Magazine:

Grade: F The Plan: Enacted on Oct. 1, Hope for Homeowners was to be the main foreclosure rescue plan from Congress, which allocated $300 billion for the effort. Supporters in Congress, like Massachusetts Representative Barney Frank, said the program would allow hundreds of thousands of borrowers, perhaps millions, to refinance into lower-cost loans by cutting the amount they owed, which for many at-risk-of-default homeowners was more than their house was worth.

The Result: So how many people have Hope for Homeowners saved from foreclosure? Zero. There have been 326 applications in the three months since the program started, but none of those people ” let alone the nearly 6 million homeowners who, by some estimates, may face foreclosure in the next few years ” have received a new mortgage or a modification for the one they have. What’s more, none of the major mortgage lenders, such as Bank of America, Citigroup and Wells Fargo, has signed on to the loan-principal-reduction program ” which gives Hope for Homeowners little chance of being successful anytime soon. “Foreclosure is the problem we have to spend a lot more effort trying to solve,” says the Economic Policy Institute’s Robert Scott. “We need to put a floor under housing prices, and stopping foreclosures is the way you do that.”

Keep in mind that this article is my understanding of the new programs; all information should be independently verified. This is a government program; therefore, subject to modification. Research and educate yourself