The big news last week was the Treasury department and HUD introducing the New Hope Alliance and Project Lifeline. Project Lifeline extends the foreclosure process by 30 days for those that are seriously delinquent. The New Hope Alliance is comprised of the 6 biggest banks in the country which service approximately 50% of all home loans in the United States. The six Lenders include:
Bank of America
Countrywide
Wells Fargo
Citigroup
Washington Mutual
JP Morgan Chase
Many are criticizing the Bush Administration calling the program a "hands off" approach. These Lenders have attempted to contact 10,000 homeowners that fit the criteria via direct mail. They publicize a toll free number that troubled borrowers can call for help (888) 995-HOPE. They are reporting only a 16% success rate.
Many homeowners are understandably embarrassed or afraid to call for help. Or perhaps they are just ignoring the problem in hopes that it will go away. The bottom line is that Project Lifeline and the New Hope Alliance can only help borrowers that want to be helped.
Is this plan enough? Is it up to the Government to step in and bailout delinquent homeowners out of foreclosure?
For more information visit http://www.homenow.com.
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