Every day we continue to read story upon story upon story about foreclosures. It is almost as if people who are decisionmakers are in a panic to find a solution. Instead of coming up with one viable solution, it appears that every couple of weeks there is a new solution on the table. Of course with each new solution comes requirements to qualify for that solution. Everyone will not qualify for every new program that becomes available. I encourage you right at the outset of this blog to find out which ones you are eligible for. Then compare the pros and cons of each.

I was not surprised to find out that The Bush administration and several major mortgage lenders recently unveiled "Project Lifeline," a national program that is supposed to help some homeowners facing possible foreclosure. As a matter of fact, I remember the day this information came forth last week. I had finished writing on mortgages and thought to myself wow I can actually keep writing. There is so much happening in the housing industry foreclosures, FHA options and mortgage fraud. Let's talk about Project Lifeline.

Project Lifeline targets those who are seriously delinquent on their mortgage. This program is a joint effort by six of the largest lenders. This should not be a surprise such as Countrywide, Bank of America, Wells Fargo, Citigroup and others. Let's face it with as much as Countrywide has been in the news, there should be a step of good faith or solutions.

To qualify the following requirements must be met borrowers must be at least 90 days behind in their payment. They cannot be within 30 days of foreclosure sale. From what I read this new plan is not so limited to where it only applies to subprime loans. It should be interesting to see how many are able to qualify for this plan. We have had FHA Secure, HopeNow and a couple of others. Now is the time when you should literally sit down and write out on a sheet of paper a pro and con list for each of the different programs. Look at each of the requirements and do not be hasty in making your decision.

I do not want the readers to misunderstand what I am saying by listing the different programs. What I am saying is I definitely believe in solutions. My concern is that after a time there will be some many programs out there, the person who needs it the most will not be able to find one that fits them. They will just miss qualifying for one reason or another in this or that program. I understand that there are numerous foreclosures that no one could have anticipated what is currently happening all over the
United States. My recommendation to anyone that continues to remain in the real estate industry and are a realtor or even mortgage broker or lender, do something that your competition probably has not done 1) if you see the person's income is not enough - then turn them down and explain to them in detail what needs to be done with their finances and 2) Establish and maintain relationships with your clients. Developing relationships for the long term versus short-term will be evident.

Dr. Taffy Wagner

Post from: FHA Mortgage Center Blog

Could Project Lifeline Be The Light at the End of the Foreclosure Highway?

Read more ... http://fhamortgagecenter.com/fha-blog/could-project-lifeline-be-the-light-at-the-end-of-the-foreclosure-highway/.