President Bush announced details of the Hope Now initiative that Secretary Treasurer Henry Paulson has been diligently working on since August. The plan was part of deal with lenders, servicers and investors to come to some sort of “happy medium” to fast track as many loan modifications as possible.

IamFacingForeclosure.com wanted to make sure that we had the details of this new plan for our readers;

• The plan would apply to subprime adjustable mortgages taken out between January 2005 and July 2007, with rates to rise between January of 2008 and July of 2010.
• Borrowers who can’t afford the loan even at low introductory rates also will be ineligible, according to Anne Canfield, executive director of the Consumer Mortgage Coalition, which represents lenders and mortgage servicers. Those borrowers will have to work with servicers on a case-by-case basis to determine if their homes can be saved.
• Loans cannot have already reset

• You must have *less* than 3% equity in your home

•  You can not have ANY late payments 60 days or more for the past 12 months

• You have to PROVE that you will not be able to make the payments once the loan resets

• You can’t have a credit score above 650

• Must be your primary residence

• No investment properties

• No negative amortization loans

We believe that this is a great step forward and that some much needed progress has been accomplished by Paulson and Hope Now.

However, there is much more that needs to be done and we think that we will see some more moves after the holidays.

But for now, many homeowners will have to fight the battle with their lenders or servicers one call, one fax, one headache at a time and many, will succumb to the pressure and just give up out of frustration or run out of time and face the inevitable, foreclosure.