MY CLIENT WOULD LIKE TO EXTEND THE LINE OF CREDIT AND MODIFY THE NOTE TO REFLECT MORE REALISTIC INTEREST RATE TO THE BANK.

It is the credit score which is becoming a problem for many even if not delinquent on their mortgage payments. Our banks, those we are supporting, who offer credit cards are on a program whereby they are reducing credit limits and as a result reducing credit scores for those not past due on anything.

One such example is a client who had a credit card with a $30,000 credit limit and excellent credit scores up in the 700’s. He owed a total of $3,000 on this card. The bank just lowered his credit limit to the balance due of $3,000. By them taking this action, this account is maxed out. Credit bureaus substantially lower your score when you have used over 50% of your available credit line and even more when you have used 100% of it. This is happening across the country. Example of this have been reported on many major media outlets with interviews of people affected. In other words, good credit gone bad due to no fault of the borrower.

Another issue with this is the ever increasing unemployment ranks which include professionals - such as attorneys, IT professionals, small business owners, teachers, engineers and the list goes on. Peo;le who, as a result of the economic meltdown (the the mortgage meltdown) find themselves with no income - again due to the trickle down effect and not of their own doing. Many do not qualify for unemployment insurance and for those that do qualify, the money they receive is in most cases not sufficient to maintain their mortgage payments. They can’t qualify under HASP - assuming their loan is owned by Fannie/Freddie - and foreclosure will, I believe, continue to increase proportionately to the increase in unemployment. HASP does not help these people who are just victims of this crisis brought upon us by - who else - the very institutions that created the problem (Fannie and Freddie included). The same ones we are giving billions and billions of dollars to - using or hording that money not for the benefit of the people but for their own continued greed, salaries and bonuses.

The mortgage industry has already been devastated as has been the real estate industry. The people who are the now comers to foreclosures and credit delinquencies are merely victims. Where is the real help we so desparately need?

An effort should be made across the board to truly have the true owners of mortgages - the owners of the securities (investors globally) truly take affirmative action in modifying loans to stop foreclosures. It benefits them as they can protect some or all of their investment in these securities, get some rate of return rather then none and help keep homeonwers in their homes with the additional positive result of helping the economy.

Your explanation of HASP is well done and much needed as too many homeowner are holding out for this plan and many will either not qualify or have a Fannie/Freddie owned loan to qualify. For those that can and do, it is a step in the right direction.