Archive for January, 2009

Peer to Peer Lending in Boise

Saturday, January 31st, 2009

Now there is a source for Boise peer to peer lending, or p2p lending as it’s sometimes called. Right here in the Treasure Valley, you can hook up with peer to peer lenders and even venture capital firms and angel investors who are interested in getting a better return on their money than the banks can give them.

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Here at is a good place to start if you’re looking for short term peer to peer loans in the Boise, Idaho area.

The key here is to express your interests and perspectives about how you spent that time

HOPE NOW Reports Loan Modification Numbers

Saturday, January 31st, 2009

“HOPE NOW is a waste of time!” she exclaimed. Now granted, I don’t get calls from any of HOPE NOW’s satisfied “customers.” She goes on to tell me the usual story about HOPE NOW, and how they did very little to help her solve her problems. “All they did was take down my monthly budget numbers and pass them on to the lender. I never heard from them again.”

The homeowners who call me typically have real problems, a legitimate hardship and are dealing with issues that require a little more attention than simply logging financials and passing them on to the lenders. When homeowners like this contact HOPE NOW, they’re often more than a little “peeved” at the results they get from that organization.

HOPE NOW published its December numbers and announced that for the first time since July of 2007, loan modifications accounted for more than half of all workouts. In an age when getting a loan modification is easier than at any time in human history, they’re beating their chest about beating coin-flip odds.

The other interesting piece of information:

                             ONLY 37 percent of prime borrowers who received workouts 
                                            completed a loan modification.

I’d bet that their recidivism rate is also higher than the industry average.

I’m certain that this number has a lot to do with the fact that the GSE, FHA and VA loans are less inclined to offer loan modifications than sub-prime.

Despite this resistance, a 37% loan modification rate is absolutely deplorable. I suggest that the main reason that the loan modification rate is so low is because they’re working for the lenders, not the borrowers.

Based on my interactions with people associated with HOPE NOW, and the experience I have in dealing with homeowners who were not helped by the organization, here are my observations:

1- HOPE NOW is basically running a mail-forwarding service. If you’d prefer to call them, they’ll forward your info to your lender if you’d like. That’s about it, though.

2- While they may call their telephone operators “counselors,” don’t expect any counseling. I suppose it depends on how you define the word “counseling.” If you mean, “administer advice to assist you in reaching your best outcomes,” you’re barking up the wrong tree [See point #3].

3- Because they’re originated and funded by the mortgage industry, they’re working on behalf of the lenders. Therefore, they offer little of value beyond what you could get by contacting your lender directly.

4- They’re best at solving “small” problems. If you’ve had a slight mishap but your financial situation is back to normal, it may be easier to work through them than directly through your lender.

5- Once they’ve submitted your information, don’t expect them to do any follow-up afterwards.

6- Once they’ve submitted your information, you’ll most likely go back to dealing directly with your lender.

7- If you’re looking for someone to act on YOUR behalf, to help you obtain the best terms possible, or to help you deal with financial difficulties, you’d best look elsewhere.

HOPE NOW advertises itself as some sort of outreach program, perhaps you’ve seen their ads, “Nothing is worse than doing nothing.” Some who’ve called HOPE NOW might disagree.

HOPE NOW fills a valuable role: they provide secretarial resources for the mortgage servicers. And they provide this service to the lenders at a very low cost. 

If this helps some borrowers to avoid falling through the cracks of a poorly-executed loss mitigation system, there is a lot of value in that function.

But for homeowners looking for an advocate who will serve their best interests, HOPE NOW is not the answer.

Hey… what do you want for free?

If you understand that you get what you pay for and are looking for someone to work with you on YOUR behalf and not your lender’s, go here for a better solution to .