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Rally Is on to Stem Foreclosure Epidemic
Just yesterday, Countrywide Financial Corp. announced that it was partnering with the community advocate group, ACORN (Association of Community Organizations for Reform Now) to expand relief for its borrowers who are facing foreclosure. Today, the Bush administration followed up with its own foreclosure relief expansion plan — “Project Lifeline” — giving distressed homeowners an additional 30 days to work out more affordable payment options with their lenders.
The new program is designed to help all homeowners who are having trouble making their monthly mortgage payments, instead of restricting assistance to those with high-interest, subprime loans. Project Lifeline was developed through the collaborative efforts of six of the largest lending institutions in the United States, which collectively service nearly half the mortgages in the U.S. The banks that have agreed to participate in the program so far are:
- Citigroup
- Countrywide
- Bank of America
- JPMorgan Chase
- Washington Mutual
- Wells Fargo
According to this new program, lenders will contact homeowners who are more than 90 days delinquent in their mortgage payments and offer them the option of delaying the foreclosure for 30 days while they explore options for making the mortgage more affordable.
Who does not qualify?
- Homeowners already in foreclosure.
- Those who have a foreclosure date within the next 30 days.
- Investors who took out the mortgage loan to purchase an investment property or vacation home.
Both of these expanded relief programs are steps in the right direction, both for homeowners and for neighborhoods and communities. Hopefully, more mortgage lenders will follow suit to cover 100% of those who are in jeopardy of losing their homes and their equity as a result of foreclosure. It is only right that the lenders who contributed to creating the current crises do their part to fix it.
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