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Mortgage lenders halt foreclosure temporarily
By admin | February 19, 2008
Six of the largest mortgage lenders in the country have stopped foreclosure proceedings for the time being. This new program which is called Project Lifeline, gives borrowers with little hope of paying off their debts up to 30 days more in which to work out some kind of payment arrangement with their mortgage lender. It gives delinquent borrowers one a chance at a last ditch attempt to settle things with their mortgage lenders.
Project Lifeline is also not restricted only to subprime borrowers with adjustable rates of mortgage but will also bring under its fold homeowners who have any type of mortgage loan. This is great news for homeowners who are struggling with the mortgage payments.
In the 30 day grace period that is granted to such borrowers, the mortgage lender will try to work out a way that will keep the borrower away from foreclosure. Hopefully in order to allow this allowance to work the lenders will be able to come up with a solution that will help these homeowners. In many cases people just let go of their homes and mortgages because their debt in many cases is more than the value of their homes.
Further compounding this problem is the fact that property values have been crashing in the country so it remains to be seen whether people take advantage of this offer at all. Bank of America, Countrywide Financial, Citigroup, JP Morgan Chase, Washington Mutual and Wells Fargo are the lenders who have come out with this offer. They hope that during the 30 day period in which foreclosure proceedings are stopped, the mortgage lenders will be able to come up with a plan that prevents homeowners from having to face foreclosure. At the top of their list are homeowners who have not made their mortgage payments for more than 90 days.
Topics: Subprime Mortgages |
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