Finally - Real Help for Distressed Home Owners!

by : Lee Cameron

Yet another program has been introduced to help borrowers who are in arrears - but this looks like it could truly be beneficial. "Project Lifeline" will 'pause' foreclosure proceedings for borrowers for more than 90 days in arrears, during which time services will determine if there is any way to avoid it.

Instead of just freezing rates for sub prime mortgage holders, this plan will try to help all types of loans. The help will be extended to include home equity loans and second liens.

If you are having a problem with your mortgage (especially if you are financed by one of these companies) you should request help from one of the six companies launching this program. The major companies are: Bank of America, JPMorgan Chase & Co., Citigroup, Countrywide Financial, Washington Mutual and Wells Fargo.

These banks are running into trouble receiving too many foreclosures, so they have found a way to help you - and them. They do not want the foreclosed home back - they want your interest and your mortgage payments.

They deal in money, not houses. For this reason, they will try their hardest to help you through this, so write or phone now if you feel yourself and your home sinking! You can contact 'Project Lifeline' online.

The Federal Reserve estimates that one and a half million sub prime mortgages will re-set to higher rates this year. A further half a million will re-set in 2009.

Bank of America has even said they may look at debt forgiveness if one of their mortgages has gone 'upside-down'. (This is the common term for when a home owner owes more on the mortgage than the house is worth.)

Homeowners already dealing with bankruptcy cannot qualify for help under this scheme. Also not eligible are home owners who face a foreclosure sale in less than thirty days.

Lenders can possibly help their distressed clients facing foreclosure to apply to these institutions for help. In some cases, the Lenders themselves will offer solutions, but most distressed home owners try to keep the truth from their Lender.

This is an unwise precaution and could cost the borrower their house, as the Lenders are actually the most motivated, and in the best position, to help.