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HOPE govt program for homeowners a SCAM!


Recently, a friend of mine gave me an article to read from FORTUNE magazine (I think the most recent issue) which discusses a business called Lend America. This company uses a new government program called HOPE to redo your home loan. The main points of the article (and a TV news segment I just saw last night) was that the company will help you refi your home loan if it has devalued below the cost of what you bought it at. Here in California, this has happened to me so I was interested in what the program was about. Basically, they will refi your home loan at 90% of whatever its appraised at TODAY. If you bought a house at $400k and its now only worth $300k, well the new loan will be for 270k and they will wipe clean the other money you had owed. It sounds good doesnt it?

There are some catches to be aware of. First off, the Fortune article talks about a lending company called Lend America. Further research into this company and you will discover that the founder of Lend America is a crook and 10 years ago was arrested and convicted of fraud in the mortgage industry. I would be extremely cautious if you are in help with your home mortgage. Be very careful if you contact that company. I would recommend against it.

OK... on to the "rules" to qualify for this new program from the link below...

-your current payment is 31% or more of your gross income.
-you are having problems paying your mortgage or foresee problems soon
-this has to be your primary residence
-you bought your house before January 2008
-this new deal would wipe out all your existing mortages (for those of us with two mortgages)

ok, it sounds doable so far right? Read on...

-you must pay an upfront mortgage insurance payment of 3%
-you'll pay 1.5% of mortgage balance every year
-you pay closing costs
-you must share both the equity created at the beginning of this new mortgage and a portion of any future appreciation

This is legalized crime IMO. Our government is nothing but a big crime syndicate. Please be very careful if you are considering doing this HOPE program. We have decided against it and will continue on our own. I would rather lose our house in 2009 if things got bad, and use our savings to buy something better, for less, in the future than to be stuck in some government program.

If you are smart with your finances you are better off making bigger payments each month which will help you pay off your house in 15 or 20 years, instead of 30.

HOPE government program...

They did an article on HOPE in the MSM about how the federal government bungled it, congress muddled it and the mortgage industry doesn't understand it.
Oh and the banks? They hate it.

Big Banks need cash? Here, have a dolly full of it, no questions or paper trail to worry about, just pick it up and walk out.

You or I need help with a mortgage? Well we have two dozen hoops for you to jump through then a labyrinthine federal beauracracy to navigate without a map or help. And we will still turn you all down. So long suckers....oh and we need more of your tax burden to increase, we have more "economic institutions" that are too large to fail.

Enjoy your freedom to starve!

Fortunately,  my wife and I were very diligent and cautious reading all the "fine print" when we bought our house. I admit we PISSED OFF a lot!!!!! of lenders, but we finally found an honest one with honest numbers. One place we were stuck at for 7 hours. They went so far as to bring in some "big gun" brokers to get us to sign on the dotted line. Finally, after getting the president of the place to come in and talk us into some BS loan, they gave up on us. I got piles of dog crap on my porch for several weeks after we bought our house too. I wonder where those came from??? :) Anyways, I can now see the difference of reading the fine print and not reading the fine print. My wife and I can stay in our home and bunker down for a few years if we have to, and my brother (who is older than me) is on the verge of losing his house within months from now. He is now considering this HOPE program as his last ditch option. He also thinks 911 was NOT an inside job, thinks Bush is "great" and plays World of Warcraft 24/7.



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Agreed, take it home with you or have an attorney go through the legalese.  I believe that part of the scam is to remortgage the homes with the banks/mortgage companies knowing that they have sold the mortgage to a bank or some other company out of the country.  This Lend America company runs commercials 24/7.  They have a lot of commercials running on CNBC.  THIS IS THE NEXT BIG SCAM.  IF SOMETHING IS TOO GOOD TO BE TRUE, IT PROBABLY ISN'T TRUE.


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