Project Lifeline: President Bush And Lenders To Announce Foreclosure Aid Plan
From CNN.com -
The plan, called Project Lifeline, will allow overdue homeowners to suspend foreclosures for 30 days while they try to work out more affordable terms with lenders. It's not clear how many homeowners will be covered under the plan, but the proposal is aimed at delinquent homeowners whose mortgages are 90 days or more past due. The plan initially will involve six of the largest mortgage lenders -- Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., JPMorgan Chase & Co., Washington Mutual Inc. and Wells Fargo & Co.
Apparently, this program will not be available to debtors in bankruptcy. It is also unlikely to be a long-term fix for borrowers who cannot afford their house payment and cannot re-finanace at a lower interest rate.
Why would the program not be available to individuals in bankruptcy? Most lenders file motions for relief of the stay that bankruptcy provides. If the relief of stay is granted and the lender proceeds with foreclosure, then this debt is outside of the bankruptcy -- and why would the program not be available?
I contacted Washington Mutual about Project Lifeline. I fall into the guidelines for this program and am working with a HOPE counselor. The foreclosure dept. of Washington Mutual said they do not participate in Project Lifeline. My HOPE counselor said they are on their list of lenders. Can you help me find out if they are participating?