Project Lifeline To Aid Delinquent Homeowners

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This is directed first to Lory. Probably the reason you were not approved for a loan modification, is that you don't show enough income to catch up, and set up a new payment, which is higher. To me, it would seem simple to just lower the interest rate, but they don't seem to do that. I negotiate short sales with banks. Some are easy to work with, and some are very difficult. Each short sale negotiator usually has at least 200 files they are working on at the time. I have a lot to say about the inefficiency of the lenders. But, talk about heart attacks...the people working in these departments must have the highest stress job in the U.S. They are not the cause of any of it, their corporate policies are. They are just employees, getting the brunt of anger from both sides. It is hard to believe I am defending bank employees, when one just screamed at me like she was a 14 year old.

Above Posted By: Kathleen | Sun, 30 Mar 2008 17:12:42 EST

We tried to work with our lender as soon as we got the letter stating that our monthly mortgage payment will increase $700. We faxed everything that was needed,letter explaining why we cant afford to pay the new amount. But 4 moths and several minor heart attacks later we were told that our request for loan modification was denied. Even after we submitted detailed expense report it shows that we only have $50 left at the end of the month.We asked why we were not approved, the rep said that Chase's investor will not approve our request. Even though we can barely make the payments, we were current which is actually a bad thing. We knew someone that was in the same situation as we are but defaulted on their payment and yet they got approved for modification. Yeah, we were foolish to think that we will be able to refinance after 2 years but we are responsible people.Its funny how banks will not give us the refi because there is not enough equity in house and adviced us to talk to our lender which we did but turns out, their so called investors decides wether we will have a place to live or not. Great job corporate america!

Above Posted By: Lory, CA | Wed, 19 Mar 2008 20:21:32 EST

Bailout, Rate Freeze, Project Lifeline, whatever label you put on it doesn't matter. First of all, there are 2.2 million homes forcasted to go into foreclosure in the next 2 years. At only $250,000/home that's $550 Billion. What effect will a $20 B bailout proposal by Bush accomplish? What will any program accomplish unless they start talking numbers that reach 1/2 Trillion dollars - and that ain't likely to happen. So, in all probability what will happen then? Like it or not the market will have to correct itself. But why is this so bad. No one complained when housing was going up 10, 20, 30% a month. Why is it so hard to believe that housing will drop by 15 - 25% as forcsted by the end of 2009. That modest decline is nothing compared to the run-up over the last few years. Personally I think that housing will see at least a 35 to 45-% drop to bring it back into alignment with incomes. Even with the recent decline in home prices we are still at historical highs when compared to incomes - and really, isn't that what determines how much house a person can afford. And for those that are losing money on their recent investment (house) well that's too bad, but bite the bullet and move on. If I borrow $250,000 to invest in stocks and the market heads south and my investment is now only worth $200,000 do you think any bank, government or anyone else would give me a bailout - NO. Why not, why would my investment be treated any different than your (house) investment. It shouldn't. I've made money in the past and lost money in the past investing and I know going in that that is a risk I take. House buyers know the same is true. You know why realtors sell homes instead of houses? Houses are boxes that sit out in the rain and rot, homes are places where you raise a family. The worst is yet to come in this housing market - there are fortunes to be made and lost - what side you are on is entirely your choice.

Above Posted By: Anonymous | Mon, 3 Mar 2008 16:54:38 EST

As a Realtor in the trenches, I have nearly 20 short sale listings at this moment an I'm now more of a counselor than anything else. I hate being put in this position but, no one is willing to help these people. We have come to the perfect storm and the tsunami of foreclosures will begin to cripple our country for decades to come. We need people representing the banks that have common sense and not just sweep it under the rug like the government is doing now. No one seems to want to make decisions here. I could prevent 20 foreclosures from happening if I can just talk to someone with a decision making capability to speak to me on behalf of the bank. All I need is five minutes for each case and I can prove to them that they will lose LESS money. . if they see the facts and accept my help to sell the house now and also help this people from ruining their credit. Why ruin families lives when a common sense approach that benefits the bank can be accomplished so easily???? I'm going crazy on the phone trying to talk common sense.. . and the only response I get is "Marissa" telling me that she can transfer me to a voice mail and they will get back to me in a 100 years. . CAN SOMEONE HELP?????

Above Posted By: Fernando Herboso | Sun, 17 Feb 2008 09:04:10 EST

I guess there is more to Monopoly than a board game.

Above Posted By: Jake | Wed, 13 Feb 2008 11:39:27 EST

I agree that the Lifeline Project is simply a bandaid. I don't think the foreclosure problem is going to be fixed unless lenders are willing to refinance the homes at the original loan amount or current value, whichever is less, at a reasonal rate. If the payment is still uncomfortable for the homeowner, at least the homeowner has the option of selling the home in a reasonable period of time. Has anyone noticed how the lenders drag their feet on the short sales. 90days + is the average response time on a short sale contract. More importantly, though, the lender needs to allow a dialogue before the home loan payments are delinquent. There are many people who don't know which way to turn because they are struggling to the make the payment to secure their credit, and yet know that the house is no longer worth what they paid for and for all intense purposes will not have the value for a very long time. If the situation as is continues, no one will be able to buy a home because of credit issues no matter how high FHA sets their loan limits. We will become a country of tenants.

Above Posted By: Trish Sublette | Wed, 13 Feb 2008 11:10:19 EST

This is truly a mess of biblical proportions. I'm looking for a way to salvage my son's life. He has a fixed first and second/ 30 year loan interest only at huge interest rates. Like other naive young couples, they counted on refinancing when the home value increased. The house is in Las Vegas and has dropped in real value more than the value of the second. I'm going to recommend that he work with the first mortgage holder to get the second to walk and take his pain now. Failing that, file for bankruptcy and start over. The value of the home will not recover in a decade. Lenders better wise up to this and start answering phone calls. The new program is another band aid. Why wait 90 days before they start talking? The second should take a token payment and write it off. No morality or obligation posts please ala Paulson. This isn't personal - it's business. It's the right thing to do.

Above Posted By: Coop | Wed, 13 Feb 2008 09:36:58 EST

Project Lifeline was announced to bring some humor into our lives. Currently this program already comes under the mitigation process. If you are having trouble making your payment, you eventually get to talk to the mitigation department to see what can be worked out. They ask you what got you behind in the first place, then they want to know know what has been done to resolve the situation. They ask about your finances and send you a worksheet to fill out on income and expenses. They want to know if you are going to be able to make payments based on these figures. Our loan servcing company has been very nice regarding our mortgage loan and have tried to figure out away to work it out. The bottom line is that we have a change in income, the value of the house is less now and they want to tack on $30,000 ( missed payments) on to the end of the loan. This will also increase our payments. This is not a workable solution for us. They need to at least go back to our original amount we owe and lower the interest rate and bring us current. We both need to start over and get back on track. So, with Project Lifeline it's really no different and really no help and definetly nothing NEW Do they think we are that stupid? We need real solutions!

Above Posted By: Diana Bell | Wed, 13 Feb 2008 08:09:33 EST

Instead of being a responsible homeowner I should have stopped paying my mortgage months ago. Had I know someone was going to bail me out for buying more house than I could afford I would have bought in a better neighborhood.

Above Posted By: Anonymous | Tue, 12 Feb 2008 19:04:32 EST

What matters most is how many homeowners will be helped.

Above Posted By: Michael Campanaro | Tue, 12 Feb 2008 18:58:44 EST

I want to know specifically what loan modifications will be done during this "pause." Additionally, if subprimes get their rates frozen, what help is going to be given to the primes who have lost jobs and need help also.

Above Posted By: Walker | Tue, 12 Feb 2008 15:23:56 EST

Delinquent Homeowners Get a New "Lifeline"

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