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Project Lifeline or Just a Waste of Time?

By
Real Estate Broker/Owner with CIDER Properties

It has been recently reported that there is now a new program to help homeowners facing foreclosure called, "Project Lifeline".  The six participants are: 

  1. Bank of America
  2. Citigroup
  3. Countrywide
  4. Chase
  5. Washington Mutual
  6. 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 . . . . .

Comments (3)

Anonymous
J A Jones
I find it very interesting when our government can steal our tax dollars to give million and billions to every foreign country who needs help.  Yet we do not take care of our own people in this country.   The bonks made tons of money and got rich from scamming uneducated homeowners, now they offer little or no help to fix they problem.   Why so many foreclosures?  Because the bank don't care about working with the homeowners, they only want their money.  Calling these mortgage companies and trying to get help is a nightmare because the people on the other end of the phone have no clue how to help.  The level of incompetence is unbelievable.  I can see why homeowners are walking away from their homes, there is no hope.
Feb 17, 2008 10:36 AM
#1
Anonymous
John Brown
Project Lifeline is a waste of time!!!  Banks are not interested in helping homeowners in trouble that is why there are so many foreclosures.
Feb 17, 2008 10:45 AM
#2
Tanya Redic
CIDER Properties - Tyler, TX
e-Pro, SFR
I agree.  They are trying to make themselves look good but we see right through it.  I agree with J A Jones comment.  I tried to help a homeowner keep her home from going to foreclosure by turning in paperwork for her loan modication but because she only sent in 1 pay stub (gets paid monthly) the tagged her file incomplete and sent her a notice for foreclosure.  The employees are overwhelmed and the foreclosing attorneys aren't much help.  Sad situation!
Feb 17, 2008 12:21 PM