Project Lifeline To The Rescue

The Bush administration devised a new plan to help people who are fighting to keep their homes, to combat the ever increasing problem of foreclosure. According to the program, the qualified home owners running 90 days late in making mortgage payments would be able to put on hold the process of foreclosure for a period of 30 days. According to Henry Paulson, the Secretary of the Treasury, this program, named Project Lifeline offers the extra time to the borrowers and lenders so that they are able to come up with schemes which are more affordable. He goes on to say that this program is targeted at people who are facing a genuine risk of foreclosure and have not done anything about it yet.

They are probably unaware of how to deal with the situation and thus have refrained from taking any action. He hopes that this announcement will alert them and they would address the problem, asking for help and taking immediate action. According to Alphonso Jackson, the Secretary of Housing and Urban Development, the Project Lifeline is a actually a lifeline and very valuable for people who are on the verge of a foreclosure. This plan will reach out to those owners who face most risk of being in a position where they may lose their homes.

To start with, this plan would deal with six major mortgage lenders - Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., JPMorgan Chase & Co., Washington Mutual Inc. and Wells Fargo & Co. At a news conference held on Tuesday, an official from the Bank of America gave a speech in favor of all the six lenders. The official, Floyd Robinson, talked about the major problems faced in avoiding foreclosures. According to him, the biggest problem is familiarizing people about all available options. Floyd Robinson asks all the home owners who have been alerted by their respective lenders not to waste time and quickly ask for help and take some kind of action. He says that the only way people can take advantage of this program is by taking action immediately without delaying.

Henry Paulson puts a lot of emphasis on the point that this Project Lifeline is meant to help out with mortgages of all types. It is not merely meant to help out with the current subprime mortgage crisis which is the primary focus of attention with foreclosures happening all around. Last week the program declared that in the latter half of year 2007, it had helped 545,000 people facing subprime crisis and 324,000 chief borrowers.

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