Project Lifeline Overview
Due to falling home values, fluctuating interest rates and elevating house inventory, a number of homeowners are facing the very real possibility of losing their homes to foreclosure.
However, thanks to Project Lifeline, an aggressive outreach program, these homeowners have a second chance to save their homes and modify their stressful mortgages — and it only takes a single call to initiate the process.
Project Lifeline is being promoted by the HOPE NOW alliance, which consists of many of the country’s major banking institutions. The program is directed at anyone who is delinquent on their mortgage payments (i.e. 90 days late or more), and it applies to subprime, Alt-A and prime loans, as well as second liens and home equity loans.
The immediate benefit to program applicants is a 30-day freeze on the foreclosure process. During this pause, applicants will be evaluated for a full loan modification so they can resume payments in a timely manner and not have to worry about the threat of homelessness any longer.
The servicers who belong to the HOPE NOW alliance will be mailing out letters explaining Project Lifeline to seriously delinquent homeowners across the country. To participate in the program, the applicant must undertake the following steps:
- Call the mortgage servicer within ten days days of receiving the letter
- Tell the servicer that they are interested in keeping their home
- Provide the necessary, up-to-date financial information to allow the servicer to pursue a solution
- If foreclosure is pending, the process will be halted for up to 30 days while the servicer decides on a workout plan.
- If a plan can be created, the homeowner must follow the plan for three straight months to show that he or she meets the requirements. After this, he or she will be able to obtain a formal loan modification.
Project Lifeline is a broad, national approach to helping all homeowners individually, regardless of what type of mortgage they are paying.
The HOPE NOW alliance represents about 50% of all mortgages and is aggressively pushing for this program to be adopted as standard standard across the industry, so that any person in delinquency has another chance to keep their home. Remember: you can take action through a single call!
Who qualifies?
Any homeowner with a loan on which payment has been past due for 90 days or more (may be a subprime, Alt-A, prime, second-liens or home equity loan), as long as the loan is not a) already in active bankruptcy, b) in active foreclosure with a sale date less than 30 days away.
Loans on investment properties, vacant properties and homes whose owners have agreed to give up do not qualify under this program.
Does Project Lifeline guarantee a loan modification?
No loan modification is guaranteed to all those who apply, but as long as a homeowner has made it clear that they are interested in keeping their home and exploring counseling options where appropriate, the servicer will do their best to find a workable plan for modifying the home loan.
Is Project Lifeline a foreclosure moratorium?
No, the program does not prevent foreclosure permanently. It provides the homeowner a “pause” in the foreclosure process where it is appropriate for the servicer to pursue an acceptable loan modification.