It has been recently reported that there is now a new program to help homeowners facing foreclosure called, "Project Lifeline". The six participants are:
- Bank of America
- Citigroup
- Countrywide
- Chase
- Washington Mutual
- Wells Fargo
They plan to help homeowners by giving them an extra 30 days to evaluate their situation or to see if a loan modification plan will keep homeowners in their homes.
As a loss mitigation consultant, I don't see how the extra 30 days will make a difference. Some homeowners won't open their mail or have already moved out of their homes. I have recently worked with a client and the bank (one of the above mentioned) is so overwhelmed and employee turnover is so hight that the left hand doesn't know what the right hand is doing.
In my opinion, it is going to take more than just 30 days. Why not refinance all delinquent loans anyway (unless they have reason to believe that fraud was committed)? Project Lifeline already has a Redline . . . . .
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