HOPE NOW, the industry alliance of mortgage lenders, servicers, investors and counselors, says its servicer members have agreed to a uniform set of procedures and guidelines designed to enhance the ability of homeowners to quickly receive the help they need and ensure that the assistance process is respectful, understandable and transparent.
The agreement also includes the mortgage lending industry's first-ever guidance for dealing with second mortgages and short sales.
For the first time, the new guidelines establish a common, streamlined timetable that will be used by each HOPE NOW mortgage servicer when working with a homeowner to prevent a foreclosure, HOPE NOW says. The guidelines establish a common set of principles on the possible foreclosure prevention alternatives including loan modifications, repayment plans, partial claims and temporarily suspending the need to make monthly payments.
The agreement also includes procedures to keep homeowners informed about the status of their requests to their servicers for help. Additionally, it encourages servicers to provide access to objective, independent and free counseling for homeowners while putting in place detailed procedures that will allow servicers to reach out to homeowners who may be in danger of losing their home.
Source: HOPE NOW
