New Hope for Foreclosure, What Is It?

A plan unveiled Tuesday by US Treasury Secretary Henry Paulson, which is being backed by six of the country\’s leading home lenders is designed to help individuals facing foreclosure to keep their homes. In an attempt for borrowers and lenders to come to amicable payment or refinancing options. The plan would allow individuals facing immediate home loss to pause the foreclosure proceedings. In an ever deepening real estate slump it is the latest effort by the Bush administration to soften the economic impact and curb the possibility of foreclosures in epidemic proportions.

“Project Lifeline” as dubbed by those in the industry specifically targets individuals who are already or about to be in foreclosure proceedings. The upside to this plan is that it does not discriminate against individuals who have a subprime or conventional loan. This will allow some reprieve for individuals to modify their loan even if they have a conventional type mortgage. Paulson went on to say that the intent is to target mortgages that have been delinquent for more than 90 days. Initially launched four months ago, by the mortgage sector Hope Now Alliance had been encouraged by the Bush administration in an effort to aid homeowners whose housing prices were falling and banks began tightening credit requirements, which is led to an explosion foreclosures.

Hope now servicers are being encouraged to fully incorporate this new program. Project lifeline is needed in response to homeowner’s confusion, as they anticipate the loss of their home and may not realize that they may be able to renegotiate or refinance their home loan by contacting their lender. Paulson went on to say that American families who can and are willing will be able to stay in their homes by an either a refinancing or loan modification efforts. Hope Now Alliance stated that hundreds of thousands of borrowers are more than 90 days late on their payments. Individuals who are late on their payments and are willing to stay in their home are urged to contact their lender.

The lenders have agreed to pause, the foreclosure proceedings so that a review process may take place. If the lender and borrower able to reach an agreement and the borrower is able to satisfy this agreement for a period of three months or longer in the modifications to the contract become permanent. Unfortunately, the US housing market has been on the downside since early 2006 after several years of housing boom. As property prices and home sales fell coupled with tightening credit requirements, foreclosures have exploded with epic proportions. Today\’s homeowners are simply struggling to pay their mortgage. According to the latest government report, home sales across the United States plummeted by over 26.4% during 2007 on newly built homes, recording the largest annual fall ever. Hope Now Alliance is being hailed as a marriage by the government to manipulate the private sector to address national problems in a voluntary manner. The Treasury Secretary notes the phenomenal governmental approach to this solution, which neither implements government mandates or taxpayer subsidies.

Search Foreclosed Homes by Top States

• Nevada Foreclosed Homes
• New York Foreclosed Homes
• Florida Foreclosed Homes
• Texas Foreclosed Homes
• California Foreclosed Homes
• Ohio Foreclosed Homes

Related Posts

• Your Family and the Prevention of Foreclosure
• Should a Homeowner be Scared of a Foreclosure?
• Hard Foreclosure Times
• More California Hotels Fall into Foreclosure
• Council Takes $1.2 Million for Purchases of Foreclosure
• Nashville Dreams Die Due to Foreclosure

Tags: Foreclosure // 2 Comments »