Heartbreaking foreclosure stories are all over the news today. Lot of people cannot afford rising mortgage payments on their refinance or home loans. Selling is not an option for many because the value of their loans is now greater than the value of their homes. The result is that tens of thousand of people default on their mortgage commitments each month and get kicked out of their homes by the lenders. The numbers are certainly discouraging.  Almost 92,000 Americans lost their homes to foreclosure in July, a 14 percent increase from the previous month, and more than twice the 42,000 foreclosures nationwide in July of last year.

Yet for many borrowers there may be a solution. An initiative created by President Bush in October 2007, HOPE NOW is a coalition of mortgage lenders and bankers, mortgage servicers and financial counselors aimed at helping as many qualified homeowners as possible hold on to their mortgage loans.

“The industry’s overwhelming commitment to helping homeowners avoid foreclosure and stay in their homes is undeniable and steadfast,” said HOPE NOW’s Executive Director Faith Schwartz. “Because of HOPE NOW’s vast and multifaceted efforts, more than 2 million families and the communities in which they live are much better off today than they otherwise would have been.”

In July 2008 alone, the coalition helped 192,000 homeowners either refinance into safer, more affordable home loans, or get modified mortgage payments that were within in their ability to pay.  That number is up from the 181,000 Americans that received aid in June.

Schwartz is hopeful that the amount of people the group can help will accelerate in coming months as HOPE NOW steps up its efforts to spread the word about its services. One of the biggest reasons homeowners end up in foreclosure is because they do not know that there are resources available to them or that most lenders are willing to make compromises.

“Outreach is crucial,” Schwartz said. “Borrowers have to talk to their lenders. That’s the most important message we communicate.”

It is true, however, that not all borrowers will qualify for HOPE NOW assistance. In order to be eligible, homeowners must have obtained their mortgages between January 1, 2005 and July 31, 2007 and have interest rates that will reset between January 1, 2008 and July 31, 2010. Only those with home mortgage loans, not home equity loans, can qualify and borrowers must be current on their mortgage payments before their interest rates increase, but show an inability to make payments after the rate hikes.

Even if you do not think you could qualify, it is worth your while to talk with a HOPE NOW counselor. She may be able to point you in the direction of other resources. Assistance is available by calling the Homeownership Preservation Foundation’s toll-free HOPE Hotline (1-888-995-HOPE). Counselors take calls 24 hours a day, seven days a week, and even on holidays.