This week's announcement puts the list at 67 and growing
HUD has released a list of lenders who will be participating the HOPE for Homeowners Program that they hope will help as many as 400,000 distressed homeowners avoid foreclosure by refinancing their adjustable rate loans to new 30-year fixed rate mortgages that will be insured by the Federal Housing Administration.
The list released on October 16 by the Department of Housing and Urban Development totaled 67 businesses, but the list will continue to be updated as new lenders come onboard the Hope For Homeowners Program that kicked off October 1.
Not Without Challenges
The plan is not without its challenges though as borrowers who want to re-finance to an FHA-guaranteed loan under the HOPE Program need to enlist the cooperation of their current lender since the HOPE loans will only be made for 90% of the home's appraised value.
HUD has acknowledged that some lenders will chose to continue with foreclosure or offer troubled borrowers a workout or loan modification rather than take the losses attributed to declining home values.
Borrowers are strongly encouraged to contact your servicing lender and any subordinate lien holders since their participation is vital for you to refinance into a HOPE for Homeowners mortgage
The holder of the existing mortgage may choose to foreclose on a troubled borrower or offer them a workout or loan modification rather than accept the losses associated with declining property values, HUD acknowledges.
HUD Recommends that when contacting lender on the list borrowers are strongly encouraged to contact your servicing lender and any subordinate lien holders since their participation is vital for you to refinance into a HOPE for Homeowners mortgage.
Distressed homeowners may be able to find some relief using the HOPE for Homeowners Program, but the participation of their current lender is vital if they hope to switch over from their adjustable rate mortgages to a new 30-year fixed rate mortgage. Borrowers never know if their current lender will be onboard with the program, but it is definitely worth a try.
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