FREQUENTLY ASKED QUESTIONS

Who is HopeLoan.com? 
HopeLoan.com is a privately owned website that serves as an informational tool for homeowners who may be facing the loss of their homes because of the twin dilemma of declining home values and inability to meet payment obligations. 

What is the Hope Loan? 
Congress created the Hope for Homeowners Program on July 30, 2008 to try and resolve the expanding mortgage crisis.  A combination of declining home prices together with rising mortgage defaults, has resulted in a rising tide of home foreclosures with the result that many Americans have lost or are likely to lose their homes.

The Hope for Homeowners Act, passed on July 30, 2008 provides for the Hope Loan. The Hope Loan is a voluntary solution, in which the distressed homeowner and the mortgage company agree to proceed on a voluntary basis to payoff the existing mortgage loan through an FHA insured loan. The new FHA loan, called the Hope Loan, is narrowly tailored to assist only some homeowners who meet or exceed the new legally defined requirements of the Hope for Homeowners Act.

In cases in which the homeowner and mortgage company agree to pursue the Hope Loan, then an FHA licensed mortgage company will try and obtain an FHA loan. A new FHA appraisal will be ordered and the new FHA loan will be tailored so as to not exceed 90% of the new appraisal, and the payments must be based on a 30 year mortgage at a fixed rate. This payment must be such that the homeowner can pay it.

Not every homeowner in trouble under his/her current mortgage will meet the qualifications under the Hope Loan program, but this Program offers real hope to many distressed homeowners who are at risk of losing their homes.  And, the new loan, i.e., the Hope Loan, will be insured by the federal government under the FHA program.

Under this new loan, the homeowner will not only have less debt, and lower payments, but she will also have to share gains in equity with the FHA. There are many details yet to be worked out in the form of implementing regulations and opinions. These will be forthcoming shortly..

Can Foreclosure be Avoided? 
Yes, it is possible to avoid foreclosure even if you have missed payments and your home has dropped in value. That is the whole goal of the Hope Loan. Meet the requirements of the Hope Loan program, obtain your mortgage company agreement to resolve your mortgage problems under that program, and foreclosure can be avoided by obtaining the new FHA insured loan and keeping the new promises on a timely basis.

What if I Refuse to Share Equity Gains with FHA?
Then the Hope Loan will not suit your needs. You will need to try and work out a modification of your current mortgage, catch up on your payments, or take some other measures.

When Does This Program Take Effect?
The Hope Loan Program becomes effective October 1, 2008 and expires in September 2011.

How Can I Find Out If I Meet the Requirements?
Click on Hope Loans on our home page, or the “QUALIFY NOW” tool and take the 5 to 10 minutes to see if you meet the requirements of the Hope Loan. You will need to have data at hand on your mortgage payments, income as of March 1, 2008, mortgage debt, second liens, and mortgages, and the like. Most homeowners know this information or can find it in minutes.

Is There Any Charge for Using the “QUALIFY NOW  Tool?  
This is free. You pay nothing to determine whether you have a chance at a Hope Loan. The QUALIFY NOW tool helps you estimate if you meet the requirements of the Hope Loan, but is not by any means a final determination. Final determinations can only be made after you have worked with an FHA lender, your mortgage company and followed the process to the point of a new appraisal. Usually by that point the facts will be well enough established to better estimate the likelihood of a Hope Loan actually being offered by a mortgage loan company and the FHA issuing an insurance guarantee of that loan.  

What Will a Hope Loan Cost Me?
You will be required to meet your new mortgage payments on a timely basis, which payments will be lower than your current obligation. The payment will be based on your ability to pay. The FHA will collect a 3% fee for the initial insurance. The law will allow this 3% fee to be included in your new mortgage as part of the note. However, there will be an annual insurance fee which you will have to pay. The fees to the organization (such as HopeLoan.com) creating the new FHA mortgage will be included in the loan and will be governed by law.   

What if I Don’t Qualify for a Hope Loan Under the New Law?
Assume you do not meet the criteria laid down by Congress to qualify for a Hope Loan, you nevertheless should consider all your options very carefully. Our mortgage modifications program is the next best option, and in some cases, may represent a better solution for you. In a private modification situation, you will not be forced to share gains with Uncle Sam. You will simply be required to meet your new agreed upon modified mortgage terms and conditions. This process may be faster than the Hope Loan process in that federal approval is not required and a new appraisal will not, in all likelihood, be required. Click on mortgage modifications above to get this process started today.

How does Your Mortgage Modifications Program Work?  
A mortgage broker may be used to negotiate with your mortgage company in order to negotiate a new and more realistic deal that both parties can live with. Our knowledge of mortgages and the process allows us to find quick and workable solutions to most mortgage problems. Not every homeowner will succeed. But, every homeowner would be wise to try. Check out our plan. Let us start helping you today. Click here to learn more.

What Should I do If My Mortgage Company Has Already Started Foreclosure?
A foreclosure proceeding in Court is a legal matter requiring prompt and professional services of a competent lawyer who practices in that Court. In general terms, all is not lost. Federal law offers reorganization through Chapter 13 that may save your home. Contact a lawyer NOW. Hours and minutes may make a profound difference in your legal rights. If you do not have a lawyer, contact your local bar association for a referral to a lawyer. It is also possible a mortgage in foreclosure can be brought back to life under the Hope Loan program, provided you have not lost possession of your home and your mortgage company is willing to work on a Hope Loan solution.

What are the Next Steps if I Qualify for a Hope Loan?
You will receive an email in which you may REQUEST follow through from American Pacific Mortgage Corporation, which is licensed to write FHA mortgages in 19 states.

What if American Pacific is Not Licensed in my State?
Then you will receive an email reference to FHA for your follow through.

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What if I am Not Qualified?
Our tool only attempts to estimate whether a homeowner qualifies. You should try and qualify again if at first you do not appear to meet the qualifications. You may be able to remedy a missed qualification or update with more accurate data.  You should always consult your attorney. Nothing prevents you from trying to contact a mortgage broker to try and qualify despite any results obtained using our tool.

Is the QUALIFY NOW Tool a Legal Determination?
No. It is an estimate based on your input and is not to be relied upon as a final legal determination of any kind.