Project Lifeline

The Federal Government announced  a new program for those that are facing foreclosure. The new program is called Project Lifeline. The program was put together by six of the nation's largest financial institutions, which service almost 50 percent of the nation's mortgages. This program is for all types of mortgages not just the Subprime loans.

"Project Lifeline is a valuable response, literally a lifeline, for people on the brink of the final steps in foreclosure," Housing and Urban Development Secretary Alphonso Jackson, said at a joint news conference with Treasury Secretary Henry Paulson.
Paulson said that the new effort was just one of a number of approaches the administration was pursuing with the mortgage industry to deal with the country's worst housing slump in more than two decades.

"As our economy works through this difficult period, we will look for additional opportunities to try to avoid preventable foreclosures," Paulson said. "However, none of these efforts are a silver bullet that will undo the excesses of the past years, nor are they designed to bail out real estate speculators or those who committed fraud during the mortgage process."

Lenders will begin sending letters to homeowners who might qualify for the program within the next few weeks.
If you have already entered bankruptcy or if you already have a foreclosure date within 30 days or if the home loan was taken out to cover an investment property or a vacation home, you won't qualify for this program.
Critics of the program have called for a 90 day moratorium and although they feel this is welcome news, they insist that more needs to be done.