Hope Now Alliance

DEFINITION of 'Hope Now Alliance'

An initiative launched in 2007 to combat the rising tide of foreclosures created by the subprime mortgage market meltdown. The Alliance is comprised of members from the U.S. government, the secondary mortgage market, lenders, mortgage backed securities (MBS) investors and homeownership counseling organizations. The group's efforts to reverse the foreclosure trend focused on contacting homeowners for loan modifications and workouts. Workouts can result in either a modified repayment plan (simply bringing the homeowner up to date on their current payments but not changing the underlying terms of their mortgage) or a loan modification (where the terms of the mortgage are modified in order to make the loan serviceable for the homeowner).

Tactics have included a nationally-promoted website with foreclosure prevention information, a 24-hour toll-free telephone number and free phone counseling through the Homeownership Preservation Foundation.

BREAKING DOWN 'Hope Now Alliance'

The Hope Now Alliance claims that as of September 2009 it has helped over 1.7 million distressed borrowers, but the actual number of borrowers who have received long-term help (meaning that they are permanently not at risk for foreclosure as a result of their loan workout or modification) is unclear. Critics at the time claimed that the Alliance did not do enough to aide distressed borrowers, that rollout of the group's assistance was uncoordinated leaving homeowners confused and still at risk for foreclosure and that its member firms was slow to move in part because as lenders and investors they stood to lose money on their investment if borrowers received loan modifications that lowered the amount of money owed on their loan.

RELATED TERMS
  1. Serious Delinquency

    When a single-family mortgage is 90 days (or more) past due and ...
  2. Foreclosure - FCL

    A situation in which a homeowner is unable to make principal ...
  3. Foreclosure Buyout

    A refinancing program that allows a homeowner to avoid foreclosure ...
  4. Foreclosure Filing

    The initial legal process of selling a mortgaged property that ...
  5. Loan Modification Specialist

    A mortgage specialist who deals specifically with loan modifications. ...
  6. Transfer of Mortgage

    A transaction where either the borrower or lender assigns an ...
Related Articles
  1. Investing

    Battling Foreclosure: The HOPE NOW Alliance Strategy

    Hope Now was formed to help prevent foreclosures. Are the organization's strengths enough to overpower its weaknesses?
  2. Personal Finance

    The New Mortgage Business: More Than Just Loans

    Many mortgage brokers adapted to the post-subprime environment by becoming loan modification specialists.
  3. Investing

    Saving Your Home From Foreclosure

    Learn the tactics you can use to prevent your home from being repossessed.
  4. Investing

    Avoiding Foreclosure Scams

    If you want to save your home, avoid bogus offers and take matters into your own hands.
  5. Personal Finance

    Can You Dispute A Foreclosure?

    The bank has foreclosed on your mortgage, but do you really have to leave? Learn how to fend off the lenders and gain the time you need to save your home.
  6. Financial Advisor

    Helping Clients Navigate Short Sales And Foreclosures

    Both buyers and sellers can benefit from a real estate professional experienced in dealing with short sales and foreclosures.
  7. Personal Finance

    Buying Foreclosures At A Bargain Price

    Learn how to buy a foreclosed home at a discount.
  8. Personal Finance

    How To Delay Foreclosure

    While losing a home can be a traumatic event for you and your family, it's best to find ethical means of delaying or avoiding foreclosure, even if it takes more time.
  9. Personal Finance

    Don't Get Trapped in a Zombie Foreclosure

    Understand how foreclosures work and you can avoid the disastrous consequences of having a zombie foreclosure.
  10. Markets

    Subprime Lending: Helping Hand Or Underhanded?

    These loans can spell disaster for borrowers, but that doesn't mean they should be condemned.
RELATED FAQS
  1. What role did securitization play in the U.S. subprime mortgage crisis?

    Learn how the securitization of sub-prime mortgages into asset-backed securities fueled the real estate market crash in 2 ... Read Answer >>
  2. What are the requirements to apply for a reverse mortgage loan?

    For homeowners of a certain age who wish to stay in their homes but are finding it costly, a reverse mortgage could be the ... Read Answer >>
  3. What is a subprime mortgage?

    A subprime mortgage is a type of loan granted to individuals with poor credit histories (often below 600), who, as a result ... Read Answer >>
  4. What is PMI, and does everyone need to pay it?

    Also known as "Primary Mortgage Insurance," PMI is the lenders (banks) protection in the event that you default on your primary ... Read Answer >>
  5. What is the 1003 mortgage application form?

    Learn about the 1003 mortgage application form, what information it requires and why this form is the industry standard for ... Read Answer >>
  6. How can I avoid paying private mortgage insurance (PMI)?

    Private mortgage insurance (PMI) is an insurance policy that protects lenders from the risk of default and foreclosure, and ... Read Answer >>
Hot Definitions
  1. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  2. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  3. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  4. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  5. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  6. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
Trading Center