Paulson Foreclosure Delay Plan
62Treasury Secretary - Henry "Hank" Paulson
Treasury Secretary Paulson "Project Lifeline" program
US Treasury Secretary Paulson has announced a federal plan to force banks to delay all foreclosure actions for a period of 30 days. Giving homeowners 30 days to contact mortgage holders to renogotiate the terms of their loans. This is just another move by the Bush regime to further delay the inevitable. Paulson is working to ensure the solvency of the US banking system and delay the pain of US home-owners.
Named "Project Lifeline"....Project Lifeline .....PLEASE...LOL
888-955-HOPE ....Hope you get through!!!
Foreclosure does not have to be inevitable. That was the message from U.S. Housing and Urban Development Secretary Alphonso Jackson (shown at right) and Chicago Mayor Richard Daley recently as they encouraged residents to attend a city-sponsored "Borrower Outreach Day." Jackson and Daley visited the Tuley Park Field House where the city will be holding a workshop to support, educate, and assist homeowners in need of help keeping their homes.
"This workshop is important. Simply put: it may make the difference between keeping your home and losing it. You don't have to suffer in silence. You don't have to lose your home. There are new means of assistance," Jackson said.
"Borrower Outreach Day" will allow homeowner to meet with lenders and housing counselors about their refinancing options, how to avoid foreclosure, and get their personal finances back in order.
HUD is aggressively working to help as many homeowners as possible. Today, HUD's Federal Housing Administration (FHA), which insures low-cost, affordable mortgages, has successfully expanded its products to help more people avoid foreclosure through refinancing their existing loans. Through FHASecure, which refinances mortgages that are current or past due, HUD has been able to assist almost 76,000 Americans since last fall, including more than 3,400 families in Illinois. More than 90 percent of borrowers who refinanced from the subprime market into FHA now have 30-year fixed rate loans at a much lower monthly cost. FHASecure will help 300,000 families by the end of this year.
"If Congress would complete their work on a bill to modernize the FHA, then we could reach even more people. For two years, the President and I have urged Congress to let FHA reach more hard-working Americans. Every day of delay puts hundreds of thousands of homeowners at unnecessary risk of foreclosure," Jackson stressed.
Bipartisan legislation is pending before Congress that would increase loan limits for FHA-insured mortgages, relax downpayment requirements, and allow the FHA to offer fair and flexible insurance premiums. While the The Expanding American Homeownership Act has passed both Houses of Congress, a final version still has not been sent to the President for his approval.
"There are many options; many sources of assistance. But, surprisingly, many people still treat foreclosure as inevitable. I am troubled by the fact that there is so much denial ... that many homeowners facing foreclosure will not call their mortgage lenders for help...that some won't seek any help at all," said Jackson.
Secretary Jackson and Treasury Secretary Henry Paulson have worked with lenders, loan servicers, mortgage counselors and investors to establish a private-sector alliance called HOPE NOW. This alliance has implemented a plan that will help up to 1.2 million homeowners avoid foreclosure in one of three ways:
- Refinancing existing loans;
- Moving borrowers into FHASecure loans; and
- Implementing a five-year freeze on reset interest rates for subprime loans.
"The industry has already assisted 370,000 homeowners and HOPE NOW has contacted more than half a million subprime borrowers."
To encourage homeowners at risk of foreclosure to attend the workshop, Jackson said: "Here is where you can explore the range of options available. Here you can find housing counselors to advise. Here you will find mortgage lenders who are working to assist you to keep your home. Here you will find hope...and help."
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Gotta love these election year smokescreens from Paulson and Bush. He's simply trying to help his banker buddies from going under, under the guise of helping homedebtors keep their overpriced houses. Well, we're not buying it gents. The clueless mainstream media is, like this article, but we're not.
This one has Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., JPMorgan Chase & Co., Washington Mutual Inc. and Wells Fargo & Co suspending foreclosures for 720 hours (i.e. 30 days) for "seriously overdue" housing gamblers, so that they can work on a way to make sure the banks don't lose their money.
What fools like Paulson still don't get is that plans like this actually ENCOURAGE people to stop paying their f*cking mortgages! Seriously, how stupid can this guy be?
NOTE TO 'SERIOUSLY OVERDUE' HOUSING GAMBLERS - WALK AWAY!!
DON'T GIVE ONE MORE PENNY TO THE BANKS!!! YOUR DEBT-TRAP WILL JUST CONTINUE TO DEPRECIATE, YET YOUR FINANCIAL FREEDOM IS AT HAND!! WALK AWAY AND RENT!! IT'S A LOT CHEAPER!!
Man, Paulson and the banks must hate HousingPANIC. Maybe I should go on the run (oh, wait, I am on the run)
Federal Government Is Set to Announce New Plan to Help At-Risk Borrowers With Mortgages
WASHINGTON (AP) -- At-risk borrowers with all types of mortgages, not just high-cost subprime loans, could be eligible for help under a new plan involving six big home lenders. The plan, called Project Lifeline, will be announced Tuesday by the Treasury Department and the Department of Housing and Urban Development, said a person familiar with the plan who confirmed earlier news reports about the plan but spoke on condition of anonymity because it had not yet been made public.
Against a backdrop of surging defaults and administration officials' prodding of the mortgage industry, the plan will allow seriously overdue homeowners to suspend foreclosures for 30 days while lenders try to work out more affordable loan terms.
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Reuters on Paulson Foreclosure Delay Plan
Banks are being "forced" to offer additional 30 days to home-owners who are currently 90 days past due on thier mortgage. Unfortunately, this plan will absolutely not help anyone. It will not help the effected banks or the consumers who have made poor financial decisions.
How much of this "plan" is politically motivated in an election year.
WASHINGTON (Reuters) - Six of the largest U.S. mortgage lenders on Tuesday will announce a program to identify seriously delinquent borrowers and halt any foreclosure process while they try to work out a new payment scheme, sources familiar with the plan said on Monday.
The lenders will unite under the program, dubbed "Project Lifeline," to identify borrowers more than 90 days delinquent and stall any foreclosure proceedings while they try to develop new loan terms, the sources told Reuters.
Executives from Washington Mutual Inc (WM.N: Quote, Profile, Research), Bank of America Corp (BAC.N: Quote, Profile, Research), Wells Fargo & Co (WFC.N: Quote, Profile, Research), JPMorgan Chase & Co (JPM.N: Quote, Profile, Research), Citigroup (C.N: Quote, Profile, Research) and Countrywide Financial Corp (CFC.N: Quote, Profile, Research) are due to announce the plan on Tuesday morning with U.S. Treasury Secretary Henry Paulson.
A source familiar with the plan said the initiative dovetails with other foreclosure-prevention efforts already under way at many lenders, but said it will give more reassurance to troubled borrowers that they can avoid foreclosure even if they are seriously late with payments.
Lenders do not imagine an open-ended freeze on foreclosure proceedings but rather would offer a reasonable period of forbearance so that lenders can determine if a borrower could manage new loan terms, a source familiar with the plan said.
The plan is scheduled to be announced officially on Tuesday morning at 11:15 a.m. EST by the bank executives, U.S. Treasury Secretary, Henry Paulson, U.S. Secretary of Housing and Urban Development, Alphonso Jackson, and Faith Schwartz, who heads a government-industry foreclosure prevention effort called HOPE NOW.
In early December, the HOPE NOW program helped shepherd an industry "rate freeze" plan that would hold interest rates in place for troubled borrowers who can make initial mortgage payments but would likely lose their home once rates rise under the original loan terms.
The initiative to be announced Tuesday specifically targets "subprime" loans that have recently seen a spike in foreclosures.
Rina Kelley says:
15 months ago
The problem you keep missing concerning 4closures is that we both cannot pay and cannot sell our homes. When I can't afford to keep a home anymore I sell it as do others. Currently in this recession we CAN NO LONGER do this because buyers are buying up free homes or next to free, gravely reduced homes due to this housing crisis. Currently BSo the only choice of the Banks choose to negotiate a short-sale to recoup their money; however, this causes further deterioration of the home and market by forcing owners out. Why can't YOU ALLOW BANKS TO DO INSTEAD A SHORT-REFI which would stop the home from vandalism as it's the true owner who really cares about it and also enable the owner to stay thus avoiding needless and wasteful 4closure. Give Owners the option you currently give banks; allow them to stay with a reduced mortgage at the going rate of value of the home with a short-refi in lieu of a short sale. it is not hard to decide a home's value....let the Real Estate Market give a current value. We all know that value comps are based on sales; so if the home isn't selling it isn't worth much. So give that back to the Owner and allow the owner a break from the burdensome loan which is more money than his/her home is really worth. Drastic measures must be taken now.