Project Lifeline - Will This “Medicine” to Foreclosure Madness Help?
February 13th, 2008 Categories: Keller Williams, Real Estate News
The latest attempt to stunt a recession? Project Lifeline.
The goal? To postpone foreclosures for an extra 30 days to allow defaulting borrowers a chance to state their case for maintaining possession of their homes.
The process? Citigroup, Washington Mutual, Countrywide, Bank of America, JPMorgan Chase, and Wells Fargo will contact borrowers who are 90 days or more behind on their payments to discuss new terms IF they’re still interested in maintaining ownership in their home and IF, and this is a BIG if, IF they’re current economic status qualifies them a “lifeline,” or second chance. If and when the borrowers make 3 consistent months payments, these newly established terms will become permanent.
The “Solution”? Time will tell! It’s hard to tell what this will do to help fend off increasing foreclosure rates around the U.S.
What happens to those who don’t qualify? Their foreclosures are likely to continue. Mortgages who default, even after their new terms?? They’ll contribute to foreclosure rates also.
It’ll be interesting to see how and if these recession “medications” help. What do you guys think? Helpful? Giving mortgages an extra 30 days to live without paying? A brilliant idea??? Let me know!
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