Homeowners struggling to make mortgage payments may now have some reprieve in the way of a new plan called Project Lifeline. Recently unveiled by the Bush administration, the plan is aimed at helping homeowners negotiate with lenders so they can continue making payments and stay in their homes. Jean talks about Project Lifeline with Mary Coffin of Wells Fargo Home Mortgage, one of six major lenders supporting the plan.
Mary says the plan will halt foreclosure proceedings for 30 days for most homeowners who are 90 or more days overdue on payments. The 30-day window of time will allow lenders to work with their borrowers to negotiate a new payment plan, Mary says.
If you are facing foreclosure and your lender is not one of the six companies taking part in the plan (Wells Fargo, Bank of America, Chase, Citigroup, Countrywide and Washington Mutual), Mary says you should still call your loan provider and try work with them to find a solution before you are forced to leave your home.