You know already in which group you are?

1. First Group: You have a "teaser" or introductory interest rate ( very low ) and you are NOT able to pay it. You will end up in Foreclosure

2. Second Group: You have a teaser rate that will adjust. When the rate resets and the monthly payments jump up you WILL be able to pay.

3. Third Group: You have a teaser rate and CAN refinance your house into another loan because you have enough equity. Your house is worth more than what you own.

4 Fourth Group: You can afford the teaser rate, but CANNOT afford a higher rate. You CAN NOT refinance because you owe more than the house is worth.

5. Fifth GroupYou are already in foreclosure. You couldn't keep making the mortgage payment either because you bougth more house than you could afford, your teaser rate reset and it was too high, your financial situation changed or any other reason.

 

Let's see if you qualify for the "Freeze Rate" ( This information is for Groups Second and Fourth )

If you belong to the second or fourth group: Keep making the monthly payment, and the teaser rate will be extended for five years ( You must apply). No need to worry about the monthly payment jumping by hundreds of dollars. Well, not for five years.

1. You are in the second and fourth group
2. Your interest rate of your mortgage will reset for the first time between Jan. 1, 2008 and July 31, 2010.
3. You are current on the monthly payments, and not have fallen behind by more than 60 days within the last year.
4. The amount owed on the primary mortgage must be more than 97 percent of the home's market value
5. You live in your house (no investors)

How to Apply

You need to contact one of the HOPE NOW agency. Call now at 1-888-995-HOPE. You can also contact your mortgage company ( if they work with this plan they should have sent you an invitation already ). If you have tried calling and were not able to talk to any one; we can refer you to one of the several non-profit and goverment approved agencies in your state. Please contact us filling out the form on the top of the page. We will send you a list of the agencies that are "authorize" by the goverment to help. You can also look for them in the internet

Some Questions About the Freeze Plan:

Before you read this questions remember that some lenders may have additional rules. The worst the situation of the housing market gets the more flexible the banks will get.
Right now they have lots of houses and their business is lending money. You can negotiate with them so you can keep your house and they can keep their loan.

I'd like to have my rate frozen. What do I need to do?
You must call a special hot-line or your mortgage servicing company.
The plan is open to a select group of homeowners. The industry estimates that about 1.2 million homeowners may be eligible.
Any borrower who wants to participate must contact the HOPE NOW coalition at 1-888-995-HOPE. There is no automatic signup. Some lenders will send letters to borrowers who may qualify, but some may not. Some lenders aren't part of this voluntary plan, but may be open to a case-by-case modification.
If you cannot get through the line please contact your bank directly.

What if I've fallen behind in my payment?
Borrowers who are delinquent should contact their lender, mortgage servicer or a nonprofit credit counselor immediately to try to work out a payment plan. The rate freeze is not automatically available to those who are behind in their payments. Lenders have an incentive to modify your loan so you can stay current.

What's the next step if I'm current with my payments?
Once you've shown you're current, the servicer will determine whether you're eligible for a modification, based on the standardized criteria established by this plan.
The next step is to see whether you could refinance your current ARM into a sustainable mortgage with a payment you can afford under stricter lending standards that have now been put into place, including income verification and tighter requirements on debt-to-income ratios. The plan does not cancel existing pre-payment penalties.

If you can refinance, you may want to refinance with a different company. You should shop around to find the one that offers you the best rate and lower costs.
If you can't refinance, the servicer then evaluates your ability to afford the higher payment that you'll owe once your adjustable-rate resets. If you can afford the higher payment, according to industry standards on debt-to-income ratios, you won't be offered any modification.

If you can't afford the higher payment, your interest rate will be frozen at the "starter" rate for five years. For most subprime borrowers, the starter rate is between 7% and 9%. The starter rate is not a "teaser" rate of 1% or 2%, which may be offered for a few months at the beginning of a loan, before jumping to the starter rate.
If it's not clear whether you can afford the payment or not (based on a quick analysis of your history and your loan), then your case would leave the assembly line and go to a case officer for more detailed individual evaluation. You'll either get a rate freeze, or you'll be told to get ready to pay the higher rate.

I thought this was going to be a blanket freeze on all interest-rate resets? Why not just freeze everybody's interest rate? Wouldn't that prevent more foreclosures without having to evaluate each loan?
Freezing everybody's rate would violate the rules for securitizing mortgages, which typically allow modifications only when the loan is in default or in danger of going into default. The goal of preventing foreclosures was balanced with the goal of maintaining a functioning securities market, which could be decimated if the accounting or tax treatment of securitized loans were changed ad hoc.

In simple words, the banks have a business to run and if they can make money of your loan they will. If you are in risk of losing your house and they in losing your loan they will help you. They care about their money, you should care about yours. Please shop around and compare lender providers before signing any mortgage or loan.

What if I have a fixed-rate mortgage, or a prime adjustable-rate loan that is about to reset?
You aren't eligible for this plan, but you should contact your lender or servicer if you feel you can't make your payment.

The industry has agreed to this plan because it is in their interest to limit foreclosures if at all possible. No one is being forced to modify loans. The government worked for the agreement because it wants to prevent foreclosures from destroying families, neighborhoods and the economy.
It's possible that preventing foreclosures will also prevent housing prices from falling as far as they might. Depending on whether you are buying or selling, that's either a good or a bad thing.