Hope Now Project

The Hope Now project was announced by President Bush to help people on the verge of foreclosure. Here's what you need to know:

Call the number, 888-995-4673 (888-995-HOPE) to get in touch with a counselor affiliated with the Homeownership Preservation Foundation and approved by Housing and Urban Development (HUD). This number is available 24 hours a day, 7 days a week.

To determine your eligibility for the program, the counselor will ask you questions about your financial situation. This initiative applies only to purchase money mortgages secured on the dates between 1/1/2005 and 7/31/2007 and whose rate resets between 1/1/2008 and 7/31/2008.

You''ll be eligible if you are current but face default after their rate resets. You'll also be eligible if you are currently in default. Expect to be on the phone about 45 minutes. If you are not eligible for this program, the counselor will let you know what options are available to you. The counselor may recommend that you call the lender or in certain cases may call the lender for you. The lenders are becoming more flexible in dealing with homeowners in default, so the prospects of finding a resolution are much better than they once were.

What kind of help is offered to each borrower?

1. If you are able to stay current even with a rate reset. You'll be able to receive counseling and refinancing into a more affordable loan.
2. If you would face default after the rate resets, you'd be eligible for counseling and a rate freeze up to 5 years.
3. If you are already in default, you would be eligible for counseling and help in creating a loan loss mitigation strategy. In addition, if part of your loan was forgiven you would not have to pay taxes on the forgiven amount (as was previously the case).