Foreclosure Freeze

By
Real Estate Agent with CENTURY 21 Anne Arnold

 

Six of the nation's largest mortgage lenders, in a joint effort to cool the raging foreclosure crisis, have agreed to temporarily stop foreclosure proceedings on homeowners who have fallen seriously behind in their house payments.

Under a program unveiled Tuesday, legal efforts to oust seriously delinquent borrowers from their homes will be postponed for 30 days while lenders and borrowers try to work out payment options.

The effort, known as Project Lifeline, will not be confined to borrowers with adjustable rate mortgages. So-called ARMs have recorded the highest rates of delinquencies, even as default for loans of all types have risen dramatically over the past couple of years.

Project Lifeline was put together with the backing of Jackson, Treasury Secretary Henry Paulson and Faith Schwartz, director of Hope Now, the government-backed, foreclosure prevention coalition.

Comments (2)

John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana
You know they hate to do this but they don't have any other options.
Feb 20, 2008 11:37 AM
Eric Reid
Renaissance Realty Group of Keller Williams Atlanta Partners - Lawrenceville, GA

As an agent that had 5 calls today from people facing foreclosure Project Life line aside from being the dumbest name in Bushism is a wast of press. None of them were able to qualify.Because a) their loan was not with the magic 6 b.) the home value in the lst 3 years has drooped 8-12% below the purchaser price so no one will approve a new loan. What we have is a home that could not sell for what was owed and lender that will not forgive a portion of the loan to bring the loan balance in line with the current value and adjust interest rates at the new adjusted loan balance.

 

Feb 20, 2008 11:48 AM

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