ANOTHER TYPICAL PROGRAM BROUGHT TO YOU BY UNCLE SAMMY! NO ONE IN THEIR RIGHT MIND WILL SIGN UP FOR THIS PROGRAM! THE FEES ARE ENORMOUS! MINE WOULD BE 9,000. PLUS THEY WOULD TAKE HALF OF YOUR PROFIT, WHAT WERE YOU PEOPLE THINKING WITH THIS INGENIOUS PLAN?
WE NEED A SIMPLE PLAN TO GIVE HOMEOWNERS A 4% FIXED 30 YEAR RATE WHO HAVE SHOWN THEY CAN MAKE THEIR EXISTING PAYMENTS.
I HAVE LESS THAN PERFECT CREDIT BUT YOU GUYS KEEP JACKIN ME WITH HIGHER INTEREST RATES EVEN THOUGH IN 20 YEARS OF MAKING MORTGAGE PAYMENTS I HAVE NEVER BEEN LATE. BUT I GET STUCK PAYING 6.75% WHERE'S MY BAILOUT?
News Flash! Now if you can just make your payments for 5 years the government will give you $1,000. a year. Yup that'll do it, glory be we are all saved! The only fair solution is 4% fixed 30 year for all Americans! Pressure your members of congress, send them emails every day!

Its frustrating without any doubt---- At this point it just seems like a bunch of bull... BTW No need for caps

I do also wish the feds and FHA would make the terms to this program more accessible. I suspect it is coming soon. In the mean time I have been urging people to call Hope Now for some current advise it is a free service and their number is 1.888.995.HOPE. Also BTW we are not a gov site we are just trying to help people understand their options.

You are so right david.

Bailout for the big companies that put us here and no help for the american people.

I would not use this h4h just take the dang house. first pay a high fee to use it, who knows what the interest rate will be and give them half of the equity when you sell.

So do the companies who got a bail out pay the government half of their profits, then why should we.

They should have done like you said give us a low fixed rate so our payments will be lowered, with no closing cost and just on the money we owe on the house. And make it simple with no middleman making a profit on our misfortune.
But instead they are looking for a way to make money and put us and our family out in the streets.

Well good news - it looks like Obama has ordered this program revamped hopefully it will be finally made accessible to the more people. Right now the banks call all the shots and that is wrong.

Here's what I think we should do:

(Sample letter to send your senator and congress representative to save your home.)

We need help now!
Originally the Hope for Homeowners program was asking banks to re-write mortgages in default for 90% of their appraised value and in exchange they would get 100% of any equity in the home in the first year and on a diminishing scale get 50% of any equity after 5 years. And to sweeten the deal for the banks the FHA would guarantee these mortgages on our backs by requiring the homeowner to pay a 1 ½% mortgage insurance premium effectively trading a loan approaching foreclosure for a mortgage insured with our tax dollars.
But that wasn’t good enough. The changes to the H4H program announced a couple weeks ago are basically the same except now the banks only have to write down the mortgage to 96.5% of the appraised value. Even better for the banks!
And that 1 ½% mortgage insurance premium we have to pay: that adds $125 to our monthly payment for every $100,000 we owe. If you have a $200,000 mortgage add $250 to your payment. Now do the math and see if you come out ahead.
Suppose you bought your home for $250,000 and you have a mortgage for $200,000 @ 7% for 30 years. Your payment is about $1,330. You lost 20% of the value of your home and it appraises now for $200,000. 96.5% of the appraised value is $193,000. Your new mortgage in the H4H program is going to be $1,284 if you can still get 7% for 30 years, but you have to add in the mortgage insurance premium yet which would be $241.25. Your new mortgage payment will be $1,525.25.
Now, let’s suppose it’s 2020. You stayed in your home and the economy improved and the housing market recovered and you’re ready to retire and sell your home. Let’s say this same home now appraises for $300,000. You have $140,000 left on your H4H mortgage or $160,000 of equity in your home. In the H4H program when you sell your home you get $80,000 of that equity and the FHA gets the other $80,000! Why is our government trying to take our life’s investment away from us?
Hey, you do the math. If I’m wrong please tell me. I’m only days away from getting my H4H bailout deal offered to me. I don’t see how I can accept it which means foreclosure for me or I have to start begging my bank to let me do a short sale to try to get out of the mess I’m in. Either way, I lose my home.
What can we do? The FHAGuy on the H4H forum says they are working to re-write the H4H program from the ground up. I don’t know if he means the banks or Congress or both are re-writing the program, but we have to tell them what we need to save our homes.
Here’s what I need and I’ll bet if you do your own math you’ll see that this plan will work for you too.
All we want is a reasonable mortgage payment we can afford and we don’t want to give up what may be the best investment of our lives: the equity in our homes.
If the government would just subsidize our interest rate for maybe 3 points, and we pay 3 points, and the banks accept a reasonable 6% mortgage rate for a 30 year term, most of us could save our homes. We don’t need principle adjustments and equity sharing and mortgage insurance. All that stuff just helps the banks. Just give us a low interest rate and spend a little of the next $350 billion bailout to save millions of homeowners from losing their homes.
How much would the homeowner’s payment be on that $200,000 mortgage example we used earlier that’s paying $1,330 now at 7% and will pay over $1,500 a month in the Hope for Homeowner’s program? $843.21 a month. Almost $500 less than you’re paying now. Is that enough to save your home?
You do the math. Try it in your own situation and see if you can survive on this plan.
What to do:
Go to www.congress.org . In the left column you’ll find a place to enter your zip code to search for your representatives. Then, click on your senators and your representative, follow the prompts, and email this letter to them.
Do it now, do it fast and do it every day until we get a plan that’s really going to save homes.
God bless you all and I hope and pray that our Congress will agree on a common sense program that will save millions of us from losing our life investment.