Breaking News: National 30-Day Foreclosure Freeze
February 12, 2008
In an accord with U.S. Treasury Secretary Henry Paulson, six of the largest national mortgage servicers have just agreed to offer 30-day foreclosure freezes to delinquent homeowners.
Secretary Paulson explained that the new plan, dubbed Project Lifeline, is designed to encourage non-paying borrowers to seek help:
“This is an important new initiative, targeted to reach not only subprime borrowers, but all 90-day delinquent homeowners nationwide with a step-by-step approach to find individual solutions to individual problems…
Project Lifeline is aimed at homeowners who face a real risk of losing their home, but have not yet addressed the problem. Perhaps they are hoping to find a way to get current on their mortgage payments, or perhaps they don’t think any solution is possible. For whatever reason they have not yet taken action; our hope is that today’s announcement will reach them, and they will reach out immediately for help – especially now that the foreclosure process is upon them.”
The lenders involved make up 50% of the mortgage market and include: the Bank of America, Wells Fargo, Washington Mutual, and Countrywide Financial Corporation.
Many delinquent mortgage holders (who are currently 90 days late or more) will soon receive letters from these lenders, explaining the proccess of qualifying for a 30-day foreclosure freeze. Homeowners will be given 10 days to respond.
Smaller lenders who were not included in the agreement are being encouraged to follow suit.
This could dramatically reduce the number of HUD homes for sale on the market, since these banks offer a huge number of FHA-insured mortgages - many of which are currently in default.
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When will the FHA limits be approved. Mamy Americans can save thier homes , should this measure be approved immediately.