HOPE NOW is a private sector alliance of mortgage servicers, non-profits, counselors, and investors that have assisted many homeowners avoid foreclosure. They have developed a new program in conjunction with the U.S. Treasury, the Federal Housing Finance Authority, Fannie Mae, Freddie Mac and other mortgage loan servicers for "at-risk" homeowners.

The plan will go into effect on December 15, 2008.

The plan helps modify existing mortgages in an effort to keep homeowners in their home. The homeowner must be in arrears 90 days or more. The mortgages must be held by Freddie Mac, FNMA or other participating lenders/servicers.

How Does the Streamlined Modification Plan Work?

Upon obtaining homeowners detailed information, the plan will reduces the homeowner's monthly payment to 38% of the borrower's monthly income. The process could include all or some of the following to accomplish the reduction:

  1. Extend the term of the loan
  2. Interest rate reduction
  3. Principal forbearance

If the above procedures do not work, the plan offers alternative case by case review to determine what options are necessary to avoid foreclosure.


The HOPE NOW alliance has proven success this year in contacting distressed home owners to encourage them to work things out. They offer a toll-free hot line at NO COST to callers in need of advice. To learn more about HOPE NOW visit the website,

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