EXAMPLES

Example 1. 
A home is purchased in 2004 for $325,000, with a $300,000 adjustable rate mortgage. Payments were originally $1,500 per month, not including taxes and insurance, but have been adjusted to $1750.00. Unfortunately, the $325,000 home drops in value to $240,000, a drop of $85,000 in 4 years. This has happened to many Americans since the real estate crisis got going in 2007.  Now, payments have been missed, and foreclosure is right around the corner for the homeowner.

If income is less than $5,640 per month, the Hope Loan Program may be the lifeline that rescues this homeowner.

Why? Because the home dropped in value beneath the mortgage. The payment is 31% or more than the income. The property is the prime residence of the homeowner. The mortgage predates January 1, 2008.

Example 2. 
Assume all the same facts as in example one above, but assume the home declined in value to $305,000 rather than to $240,000. In this example the homeowner fails the Hope Loan test because her home did not fall enough in value.

There are limits to the Hope Loan Program, and this is the main one. Here the value remained $5,000 over the loan.

Don't give up hope. In fact, the mortgage modification program may be better suited to your specific needs.   The mortgage modification program offered by HopeLoan.com, just as in the case of a Hope Loan, relies on a voluntary agreement. In one situation the FHA will make a guarantee, in the other situation the lender believes that the proposals put forward by HopeLoan.com on your behalf represents a better solution that taking back the home.