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. Mortgage Modification

    A permanent change in a homeowner's home loan terms that makes ...
  2. Foreclosure Action

    The legal proceedings initiated by a lender in the case of mortgage ...
  3. Serious Delinquency

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

    A refinancing program that allows a homeowner to avoid foreclosure ...
  5. Foreclosure - FCL

    A situation in which a homeowner is unable to make principal ...
  6. Mortgage Short Sale

    The sale of a property by a financially distressed borrower for ...
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. Investing

    Things To Know About The Home Modification Plan

    This program allows FHA borrowers to reduce monthly mortgage payments through negotiation with lenders.
  3. Personal Finance

    Avoid Foreclosure: How To Handle An Underwater Mortgage

    Foreclosure is the biggest fear of any struggling homeowner. These tips just might save your credit rating.
  4. Personal Finance

    Rate Freeze To Cool Mortgage Meltdown

    The U.S. government is offering help to subprime borrowers. Is this a cure or a curse?
  5. Investing

    5 Ways To Avoid Foreclosure

    If you go into default on your mortgage payments, don't worry, there are still ways to save your home.
  6. Investing

    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.
  7. Investing

    Saving Your Home From Foreclosure

    Learn the tactics you can use to prevent your home from being repossessed.
  8. Personal Finance

    How to Work With Your Lender if You Can't Pay Your Mortgage

    Homeownership is a dream but when you can't pay your mortgage it becomes a nightmare. In the wake of the housing meltdown lenders are more willing to help.
  9. Investing

    Avoiding Foreclosure Scams

    If you want to save your home, avoid bogus offers and take matters into your own hands.
  10. Investing

    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.
RELATED FAQS
  1. 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 >>
  2. What is Foreclosure Investing?

    Foreclosure investing, despite the promises of late-night television infomercials, is not for the inexperienced. Read Answer >>
Hot Definitions
  1. Agency Theory

    A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving ...
  2. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
  3. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
  4. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  5. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  6. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
Trading Center