Bush borrows $164 Billion from China to give us all $300 to $1200 (as long as you file your 2007 return). We are NOT supposed to use this cash to pay off bills, but rather go out and spend it. Since it’s only $300-$1200, we can only spend it at Walmart on products made in China. See, how this is economic stumulus for China?
If you call HopeNow or Project Lifeline (both are really the same circus in different costumes), here’s what will happen:
1- Counselor will give you a bunch of disclaimers so you understand that although he/she works for a non-porfit organization, the big 5 banks and lenders pay hefty donations to them. (Translation: Counselors are really advocates of the Banks, who pay their paychecks, not the homeowners.)
2 – You will be on the phone with a counselor for 45-mins to 1 hour to give them every tiny disgusting detail of your financial situation. They don’t want estimates or rounding up to the nearest dollar. They want EXACTLY how much Starbucks you buy in year.
3 – Once your finances are itemized, counselor will scrutinize it (really wait for her computer to spit out the “suggested cutbacks”) and tell you to stop eating out, cancel HBO, get rid of the Nanny, get a second job, get a third job, and eat canned food for the next 8 months.
4 – You will then have a “threshold ratio” in which 36% negative is the point at which the counselor can plug you into a “modification plan.” The four types of mods are: Forbearance (a payment holiday of up to 8 months where you pay a lot less per month). Just remember that forbearance still accumulates late fees that you will still need to pay once you’ve secured your forth job. Loan Modification: your late payments and penalties are added to your balance and you refi the whole thing. (You must qualify for this re-fi like any other loan). Partial Claim: your late payments and penalties are totaled and a lovely lien on your property is recorded for the amount. FHA Secure: A refi to a lower payment amount. You must qualify for this too.
5 – If you can’t do any of the above, counselor slots you in the “disposition” category. Dispositions include: Short Sale, Deed in lieu and foreclosure.
Counselors job is to keep you in your gigantic upside down loan and force you to accept a larger balance to cover your payment shortfalls. They will tell you to forego paying everything else, credit cards, health insurance premiums, etc. in favor or your home loan. Their job is not to advocate for the reasonable financial survival of the homeowner but the presrvation of the Lender’s portfolio.
However, if you still think they can help, go ahead and give them a call. http://www.HopeNow.com May the Force be with you.
