Washington Mutual Bank (Wamu) is working on a project called “Project Lifeline,” a proposal agreed upon by six banks that will help both the banks who were hurt by the mortgage payment crisis and the borrowers who found themselves in trouble because of the recent credit crunch in the housing industry.
“Project Lifeline” is a plan put together by Washington Mutual, Bank of America, Citigroup, Countrywide, JP Morgan, and Wells Fargo to try to relieve banks from the housing bubble’s burst by helping those in need the most: the borrowers who are stuck in loans that are increasing in payment amounts and leaving them short on cash to pay all the bills.
The banks involved in Project Lifeline are working to make sure that more homeowners don’t continue to lose their homes, and that they are given every chance to succeed and not become just another mortgage victim. These banks have actually worked directly with the Housing Department and the US Treasury to help set up this plan and execute it to full efficiency. Part of this plan gives homeowners an extra 30 days to renegotiate mortgage payments with their lenders.
The decline of the nation’s housing market has prompted banks to renegotiate most mortgages to help ensure that a house doesn’t go into foreclosure. The goal of the project lifeline is that participating banks like Washington Mutual will be able to help reduce the number of home foreclosures and bankruptcies while improving affordability and responsible borrowing practices.
The homeowners who will benefit the most are those who purchased their homes on a sub-prime loan. One of the major missions of Project Lifeline is to start to allow banks to freeze the lower cost “teaser” rates for up to another five years — giving the markets time to recover and homeowners time to pay off more on mortgages and refinance at better interest rates.
While government programs are benefiting homeowners; banks such as Washington Mutual are committing significant resources to Project Lifeline. Most of the governing statutes are aimed at homeowners who are only one or two months behind in payments or on the verge of a credit crunch. Project Lifeline will work with homeowners who are desperately trying to keep up with payments but may have fallen two, three, or even six months behind.
Washington Mutual’s continued dedication to Project Lifeline shows they are committed to working with borrowers to make sure that they get every chance possible to keep their homes and build responsible credit management strategies.
Jeff Sheets, founder of 825credit.com [http://www.825credit.com] is a personal finance expert and consumer credit advocate who specializes in responsible credit management and creation. He can be reached online with comments,