Coconut Creek Real Estate: Hope For Homeowners Act Not Offering Any Hope

This past summer, as a part of the $700 billion dollar bailout plan passed by Congress, the Hope For Homeowners Act of 2008 was established. It was designed to offer homeowners around the nation, and in Coconut Creek, the opportunity to get help with their mortgages and avoid foreclosure. Lender participation was voluntary as they would have to agree to take a loss on the mortgage. At the time the legislation was passed, the act was expected to help 400,000 struggling homeowners.

Fast forward to today and only 312 homeowners have applied to take part advantage of the Hope For Homeowners Act. Of those 312, none have been helped. That’s right-not one homeowner has benefitted from this legislation. Leading mortgage brokers say that it was a good idea but that it was badly implemented. The program has two large shortcomings-excessive fees and investors unwilling to write down mortgages.

To make matters worse, the blame for the plan’s failure is going back and forth between the Bush administration and Congress. The White House says Congress micromanaged the program, rendering it useless. Congressional Democrats say that the Bush administration is to blame as they opposed the plan from the beginning. Still some government officials believe that with some changes this act will be able to help homeowners.