21st Century Financial Freedom

Six major banks making up half of Americas mortgage loans have joined a government backed mortgage relief program that will halt the foreclosure process for up to 30 days while lenders try to work out a payment plan that is in the best interest of the homeowner and the banks.

The six banks taking part in “Project Lifeline” include Bank of America, Citigroup, Countrywide Financial, JP Morgan Chase, Washington Mutual and Wells Fargo.

The new relief program is for those who are currently 90 days or more delinquent on their current mortgage and are ultimately facing foreclosure.

Unlike previous relief programs that were targeted towards homeowners with an adjustable rate mortgage or a sub-prime mortgage the new relief program is also available for those who have a fixed rate mortgage but are just unable to keep up with their mortgage payments.

The main focus of “Project Lifeline” is to provide a temporary pause in the foreclosure process, “long enough to find a way out,” said Alphonso Jackson the Secretary of the Housing and Urban Development.

According to the Mortgage Brokers Association about 12.2 percent of sub-prime fixed rate mortgage are delinquent compared to 18.8 percent of sub prime adjustable rate mortgages.

However, even though project lifeline will provide some breathing space for home owners, it will not completely eradicate the problem. What it does do is provide ample opportunity for bargain hunters  to snap up cheaper homes at rock bottom prices. Unfortunately one persons misfortune generally is someone elses fortune, and it is now different here. 

A list of foreclosure businesses that search and source foreclosure properties for sale can be found here.

This entry was posted on Tuesday, February 12th, 2008 at 8:32 pm and is filed under Society & Culture. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.