“Project Lifeline” The New Government Backed Mortgage Relief Program

Six major banks making up half of Americas mortgage loans have joined a government backed mortgage relief program that will halt the foreclosure process for up to 30 days while lenders try to work out a payment plan that is in the best interest of the homeowner and the banks.

The six banks taking part in “Project Lifeline” include Bank of America, Citigroup, Countrywide Financial, JP Morgan Chase, Washington Mutual and Wells Fargo.

The new relief program is for those who are currently 90 days or more delinquent on their current mortgage and are ultimately facing foreclosure.

Unlike previous relief programs that were targeted towards homeowners with an adjustable rate mortgage or a sub-prime mortgage the new relief program is also available for those who have a fixed rate mortgage but are just unable to keep up with their mortgage payments.

The main focus of “Project Lifeline” is to provide a temporary pause in the foreclosure process, “long enough to find a way out,” said Alphonso Jackson the Secretary of the Housing and Urban Development.

According to the Mortgage Brokers Association about 12.2 percent of sub-prime fixed rate mortgage are delinquent compared to 18.8 percent of sub prime adjustable rate mortgages.

Submitted by admin on 2/12/08






Alternative metal