It appears that our skepticism over the much ballyhooed Hope Now Alliance (the doomed from the start master plan to save millions from foreclosure) was well founded. NYT reports on the results:
Kenneth Goodman, a homeowner in Fontana, Calif,. said he did not have a good experience trying to get help through Hope Now.
Mr. Goodman, 53, said he had called Hope Now three times in recent months because he was struggling to pay the mortgage on his two-story tract home. The first time he was referred to a mortgage escrow company. The second time, “I got someone oblivious to everything,” he said. The third time the counselor told Mr. Goodman that he had a choice: Sell his home for less than the value of his mortgage, or face immediate foreclosure.
“It was all unhelpful,” Mr. Goodman said. He worries that he will lose his home.
There are Hope Now success stories, but the group declined to point to any.
The NYT goes on to suggest that the non-success of the program is the result of a combination of intractable lenders and/or servicers unwilling to take losses along with their borrowers, and a nearly non-functionial system to "triage" distressed borrowers. Sounds about right.
Distressed Owners are Frustrated by Aid Group [NYT]