12 months ago
CERES, CA - Carol Ann and Henry Rangel missed their first house payment this month but felt confident they could stay in their home through the federal Hope for Homeowners program.
"We studied it together and learned that we qualified for it," said Carol Ann.
Under the $300-billion program approved by Congress last summer, distressed homeowners like the Rangels can have their existing mortgages forgiven in exchange for a new FHA-insured fixed rate loan.
The Rangels contacted American Security Financial in Modesto, the only FHA-recommended loan broker in Stanislaus County. From there, the application went nowhere.
"It's just not worked at all," said senior loan consultant Leeann Simpson. "It's probably one of the saddest things."
Simpson said loan brokers around the country have been unable to find lenders willing to participate in the Hope for Homeowners program. American Security Financial has collected more than 500 applications and none has been accepted.
"It's a hopeless program, unfortunately," said mortgage consultant Cynthia Ruiz. "That's the name it should really be called."
Housing and Urban Development Secretary Steve Preston this week acknowledged the failure of the Hope for Homeowners program. HUD has taken steps to make the program more attractive to lenders by reducing the loss they must accept to participate.
There's still no guarantee the Rangels will be able to stay in their home of 12 years.
"It's disheartening," said Carol Ann Rangel. "It's called Hope for Homeowners. Where's the hope?"
News10/KXTV
