With the recent introduction of a last-effort quelling tactic dubbed “Project Lifeline” individuals in the home mortgage industry are attempting to lessen the pain on the end of homeowners in the dreaded depths of foreclosure. Project lifeline aims to postpone some foreclosure proceedings for a 30 day period in an effort to help Americans keep their homes rather than lose them. And although the title of this project is indeed pushing an invigorating vibe, it might very well fall short and flatline before it provides a sufficient amount of relief for those in need. The project is more so a hopeful pursuit with intended “long-term” aspirations, yet yielding more realistic short-term results.
Foreclosures To Be Put On Hold In A Frozen Interim
Temporarily, for a span of 30 days, six of the nation’s largest and most notable mortgage lenders halted their foreclosure proceedings held against financially-inept or overdue borrowers. The reason is one backed with ameliorative hopes in mind, hopes to benefit American individuals to keep their homes rather than forfeit them through foreclosure. In the process an alliance was formed, one so suitably called ‘Hope Now Alliance’ consisting of the following mortgage lenders: Bank of America, Citigroup, Countrywide Financial, J.P. Morgan Chase, Washington Mutual and Wells Fargo. The six aforementioned lenders are monumental as a cooperative collective as they represent a greater portion – more than half – of the mortgage servicing market in the United States.
Those who qualify for the interim of Project Lifeline are not limited in nature, not as with prior government programs narrowing qualifiers to having just adjustable-rate mortgages. Any and all homeowners with different types of mortgages – ARMs, sub primes, balloon mortgages and so on – of any category or demographic will without a doubt qualify for Project Lifeline’s period of financial resting and organizing.
Activity During The Interim For Lenders
As stated, lenders are delaying all foreclosure processes merely to give their homeowners of interest a chance to organize and plan their monetary situations, as well as better position themselves financially to avoid foreclosure once 30 days has passed. Rest is non-existent for lenders though as activity is full on on their side of the agreement. Throughout this interim period lenders aim to reshape and correct said mortgage agreements as to make them more financially feasible and personally manageable for homeowners. The goal is to help their borrowers out in the provided time, and ultimately – and ideally, permanently – omit the predetermined existence of further foreclosure junctures.
The Realistic Flatlining For Project Lifeline
It seems that the set 30-day postponement is one too short in length to succeed in satisfying a monumental betterment of the current foreclosure crisis homeowners are in the thick of. It’s a great first step to calm and resolve the current mortgage foreclosure situation, yet seems insignificant in it’s weight looking at the substantiality of the crisis itself. So, rather than putting a potent pulse back into the mortgage industry and their overdue homeowners for the long-term, it seems mortgage lenders, through Project Lifeline, have accommodated to their overdue borrowers in a satisfactory, quick and jolt-like manner, one lacking enough time and juice to heal the wounds already imposed. It’s a delayed proactive measure taken in a deep, current mortgage mess, one more so delaying the inevitable.