Six major banks announced a new program today to aid homeowners facing imminent loss of their homes. Banks don't want to take your home and force you onto the streets. It doesn't help them or you and only adds tot he glut of unsold homes they cannot turn into cash. Worse, vacant homes are being vandalized and stripped of metal for recycling by criminals. This is forcing property values down even more in these neighborhoods. It is a vicious cycle.
Project Lifeline is a new program for those already in foreclosure. It freezes the process for thirty days so homeowners can renegotiate their mortgages or refinance. Bank of America, Washington Mutual, Wells Fargo, JP Morgan (no relation), Chase and Countrywide are being backed by the US Treasury Department in this initiative.
The new program is open to all borrowers, not just those victimized by the sub prime market. You must be 90 days behind in your mortgage payments. Foreclosure normally begins once a mortgagee is 90 days behind.
Mortgage counseling is also available. Congressman Paul Kanjorski announced $230 million in funding for this assistance last week. If you are having financial trouble contact your lender about establishing new terms. They don't want your house, they want your loan and regular payments. They will be willing to work with you rather than have to go through foreclosure which costs them money for legal fees and wind up with an empty house they cannot resell. Take advantage of the assisstance available through these programs.