The U.S. Treasury Department and six major mortgage lenders announced a plan to give strapped homeowners a chance to keep their homes even after falling behind on payments.
Aptly, it is named, Project Lifeline. The hope is that it is not only a lifeline for struggling homeowners, but for the struggling economy.
The six lenders include Bank of America, Citigroup, Countrywide, JP Morgan Chase, Washington Mutual and Wells Fargo.
"Today, six of the largest servicers, who represent 50 percent of the mortgage market, are announcing Project Lifeline, a targeted outreach to homeowners' 90-days or more delinquent that may lead to a 'pause' in the foreclosure process," Treasury Secretary Henry M. Paulson, Jr. said. "This is an important new initiative, targeted to reach not only subprime borrowers, but all 90-day delinquent homeowners nationwide with a step-by-step approach to find individual solutions to individual problems. We encourage all HOPE NOW servicers to adopt this new program.
"Project Lifeline is aimed at homeowners who face a real risk of losing their home, but have not yet addressed the problem. Perhaps they are hoping to find a way to get current on their mortgage payments, or perhaps they don't think any solution is possible. For whatever reason they have not yet taken action; our hope is that today's announcement will reach them, and they will reach out immediately for help especially now that the foreclosure process is upon them."
The six lenders are part of the 25-member HOPE NOW alliance, which was organized by the Bush Administration to seek private-sector solutions to the housing mess. To see if you can take advantage of the services they offer, call 1.888.995.HOPE.
The Daily Green also offers money-saving tips that homeowners might try to reduce electric and other bills, so that there's more left over to pay the mortgage. Click the links at right for more information.
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