Mortgage Relief For Stressed Homeowners

Mortgage relief for stressed homeowners is finally on the horizon. Project Lifeline is a mortgage relief plan instituted by the Treasury Department and the Department of Housing and Urban Development. The plan is designed specifically to allow homeowners who are seriously in arrears on their mortgage payments, to suspend foreclosure on their home for a period of 30 days, while mortgage lenders try to work out payments which are more affordable. Six major lenders are involved, including the Bank of America, Citigroup, Inc., Countrywide Financial Corp., JPMorgan Chase & Co., Washington Mutual Inc., and Wells Fargo & Co.

The plan is designed for homeowners who are seriously in debt, specifically those who are at least 90 days behind in their mortgage payments. The lenders will send a letter to delinquent mortgagors, asking them to call. The delinquent borrowers who call, will be asked if the want to continue living in their home, and if they do, they will be offered financial counseling.