Washington – Feb 12, 2008 – Congressman John Boehner (R-West Chester) today encouraged homeowners concerned about potential foreclosure to take advantage of a new program that could help them stay in their homes. Project Lifeline, an alliance of some mortgage lenders under the leadership of Treasury Secretary Henry Paulson and Housing & Urban Development Secretary Alphonso Jackson, will work with homeowners to develop a plan that could “pause” foreclosure for 30 days while homeowners work with their lenders.
“Many Americans who are having trouble making mortgage payments can find help staying in their homes by making a simple phone call,” Boehner said. “Project Lifeline can help people who want to take responsible steps to keep their homes. While this is not a long-term solution for the problems in today’s housing market, this important initiative may help homeowners avoid the dangerous cycle of foreclosure.”
Project Lifeline will target seriously delinquent homeowners – 90 days or more – who face the greatest risk of losing their homes. These homeowners will receive a letter from Project Lifeline with the initial steps that must be taken within 10 days of receiving the notice:
- Step 1: Call your mortgage servicer;
- Step 2: Tell the servicer that you have received the Project Lifeline letter, you want to stay in your home and you will seek counseling, if necessary;
- Step 3: Provide updated financial information so the servicer can explore an appropriate solution;
- Step 4: If appropriate, any pending foreclosure may be “paused” for up to 30 days during this review process until a formal decision is made, and if possible, a plan is created; and
- Step 5: If a plan is established and the homeowner follows that plan for three consecutive months, the loan will be formally modified as the homeowner will have demonstrated an ability to meet the requirements.
The servicers participating in Project Lifeline represent about half of the mortgage servicing market. They are: Bank of America, Chase, Citigroup, Countrywide, Washington Mutual and Wells Fargo. These companies have provided a blueprint the rest of their industry can follow.
Project Lifeline letters will be mailed from the individual mortgage companies.
Qualifying Loans
All 90-day delinquent loans, including subprime, Alt-A, prime, second liens and home equity loans except the following qualify:
- Loans in active bankruptcy;
- Loans in active foreclosure with sale date less than 30 days away;
- Loans in which the homeowner has indicated a desire to give up the home;
- Loans for investment properties; and
- Loans for vacant properties.
Boehner represents Ohio’s 8th District, which includes all of Darke, Miami and Preble counties, most of Butler and Mercer counties, and the northeastern corner of Montgomery County. He was first elected to Congress in 1990.
