This week, the federal government and six big mortgage servicers announced Project Lifeline, billed by Treasury Secretary Henry Paulson as "a targeted outreach to homeowners 90 days or more delinquent that may lead to a pause in the foreclosure process."
Project Lifeline reaches out to a broader swath of borrowers. It covers all residential mortgages, not just subprime loans. The project comprises six of the biggest mortgage servicers: Countrywide, Wells Fargo, CitiMortgage, Chase Home Finance, Washington Mutual and Bank of America.
They will send letters to their customers who are at least 90 days past due, offering to put off a foreclosure sale by 30 days if the borrower:
- Calls within 10 days of receiving the letter.
- Expresses a desire to avoid foreclosure and keep the house.
- Agrees to financial counseling, if the lender deems it necessary.
- Provides detailed financial information.
Here is an article on BankRate.com.
