Frequently Asked Questions

Please write to questions@HomeownerHope.org, if you do not see your question answered below.

What is 'HERA'?
Earlier this year, the United States Congress passed a law to help homeowners who are threatened with losing their homes. The law took effect on October 1, 2008 - yet only 42 households IN THE NATION were helped by this new program in the month of October.

What is 'HERA'?
'HERA' stands for "Housing and Economic Recovery Act", which includes a loan modification program for homeowners struggling to meet their home loan payments due to economic hardship. HERA legistlation includes a spefic loan program called "Hope for Homeowners".

Will the HERA Hope for Homeowers loan program help all homeowners?
Unfortunately, HERA Hope for Homeowners will not help all homeowners who are struggling to pay their home loan payments. However, it is estimated that as many as 400,000 households qualify for the HERA Hope for Homeowners loan modification program.

Who cannot be helped through this program?
Consumers who purchased homes that were more than they could afford are not likely to be able to use HERA Hope for Homeowners. All HERA Hope for Homeowners loan modifications require full document loans, meaning that all income and financial information must be documented.

Is there any other help for those consumers who do not qualify for the HERA Hope for Homeowners program?
At this time, programs are limited, but there are changes daily in the home loan industry, and in government programs. You may ensure that we will send you up-to-date information by signing up for our Newsletter.

What is Consumer Mortgage Advocate?
Read more about Consumer Mortgage Advocate on our About Us page.

Who pays for this service?
The consumer never pays for HERAHope or. The service is offered through Consumer Mortgage Advocate. Consumer Mortgage Advocate Is a non-government community service organization dedicated to offering consumers non-biased, accurate information about home loans, specifically about safe, suitable, fixed-rate home loans for purchase, refinancing, or modification requests.

Why was HomeownerHope.org created?
HERAhope has been created to offer consumers a safe, simple way to learn whether they may qualify for a loan modification program, in the privacy of their own home.

In late 2008, the United States Congress passed a law to help homeowners who are threatened with losing their homes. The law took effect on October 1, 2008 - yet it has been reported that perhaps only a handful of households in the nation have been helped by this new program.

Information regarding home loans is known to be confusing, and the average homeowner who is struggling to meet their loan obligation may not know where to turn for help.

HomeownerHope.org was created to fill the need of the consumer who is having difficulty in meeting their home loan payments who wishes to learn how best to help themselves in the privacy of their own home.

What is the difference between HopeNow and HERAhope?
The services offered by HopeNow require that you call a councelor. As an alternative, HERAhope offers a safe, private and simple survey of questions that the consumer may take in the privacy of their own home.

Then, the consumer is given tools and a simple check list to begin the loan modification request themselves.

The consumer will never be solicited, and there is no personal or financial information disclosed, so there is no risk.

What is the difference between a loan modification and refinancing a home loan?

Loan Modification

A 'Loan Modification' will be a permanent change in the terms of a the home loan, and with the goal of changing the loan so that the homeowner can more easily in afford the loan payment.

Generally, a loan modification will be made by the lender who sends you your monthly home loan bill. The modification request from you, the homeowner, is usually due to financial hardship.

A loan modification can include one or more of the following:

• A reduction in the interest rate on the home loan,
• A change of the term of the home loan (the 'term' equals the number of years of the loan)
• A change in the type of home loan
• A combination of all three above.

Refinancing

Refinancing is starting all over with a new home loan. Most often, homeowners refinance a loan when interest rates are going down; this can result in a lower monthly home loan payment for the homeowner.

Another reason a homeowner may want to refinance is when they want to combine other debts or loans (this is called 'consolidating') or to take out cash against the value of the home property, for example, to make improvements to the home. The last example is called a 'cash-out refinance'.

Refinancing of the loan can change the length of the loan, or can change the total amount due on the loan, or even a combination of the two.

Consumer Question: "I bought my home in late 2007 while I was working my last year before retirement. I have since retired (I am age 65). Due to the disaster in the financial markets, my retirement income is dramatically different from what I expected it to be. Would I qualify for the HERA Hope for Homeowners modification?"
Answer: You are an excellent candidate for the HERA Hope for Homeowners loan program.

Consumer Question: "I am able to make my home loan payments right now, but my home loan is scheduled to change the interest rate at the end of 2009. Is there a timeline for the HERAhope program? Will the program expire?"
Answer: The HERA Hope for Homeowners program is effective from October 1, 2008 to September 30, 2011.

Consumer Question: "I am being contacted every day by people who say they can modify my home loan for me. Should I work with these people?"
Answer: In most cases, no. Ask these companies whether they expect an upfront payment from you, or whether they will take payment AFTER the successful modification, or change, in the loan.

There are ethical and reputable agencies, including attorneys, who are offering loan modification services for a fee. These legitimate agencies only require payment AFTER a successful modification, or change, in the home loan.

Consumer Question: "I am fully employed, but unfortunately, I bought my home at the top of the market and now am 'upside down'- that is I owe more than the home is worth. I would like to stay in my home, but I am not getting help from my lender. My income is commission-based, and due to the changes in the economy, my income has dropped by 20%. Would I qualify for the HERA Hope for Homeowners modification?"
Answer: You are an excellent candidate for the HERA Hope for Homeowners loan program.