Some Homeowners to Get Default Letters
November 6, 2007
A list of over 200,000 homeowners who may be in danger of defaulting on their loans and thus facing foreclosure is set to be mailed out in November. This is according to a newly formed mortgage industry coalition known as Hope Now.
The program is set up to help the 2,000,000 homeowners who are facing reset interest rates which will increase their payments substantially once the reset is in place. It is hoped that by providing early information some of these potentially cash-strapped homeowners will be able to make adjustments in order to meet the new challenges they will face.
Treasury Secretary Henry Paulson has already met with senior leaders of the new coalition and has asked mortgage lenders to develop plans and programs that will quickly identify those borrowers who are most able to avoid foreclosure through either loan modifications or mortgage refinancing.
Some of the biggest lenders are participating in the Hope Now program. Bank of America Corp., JP Morgan Chase and Co., Citigroup Inc., Washington Mutual Inc, Countrywide Financial Corp., and Wells Fargo & Co., are all involved in the program. Also included are several trade groups and mortgage service companies.
According to the current plan, the Hope Now letters are to be mailed starting November 19. The letters will include a toll free phone number where homeowners can speak to a qualified housing expert