US HOMEOWNERS TO GET EXTRA HELP

i LOVE AMERICA PROJECT LIFELINE AND A GOVERMENT PROGRAMME CALLED HOPE NOW
THESE PEOPLE HAVE OBVIOUSLY NEVER MET TOM PARLON, BUT IRELAND IS DIFFERENT

US homeowners ‘to get extra help’

US homeowners will get extra time to renegotiate mortgage payments
Six major US banks are expected to announce plans to offer more help to homeowners struggling with mortgages.
Bank of America, Citigroup, Countrywide Financial, JP Morgan Chase, Washington Mutual and Wells Fargo are reported to be taking part in “Project Lifeline”.

The plan is expected to be announced on Tuesday by the US Treasury Department and Housing Department.

Under the plan homeowners will be given 30 days extra to renegotiate their mortgage payments.

Project Lifeline

The six banks are already involved in a government programme called “Hope Now”.

It helps those that took out sub-prime mortgages and are now facing a dramatic increase in payments.

The banks say they helped 545,000 sub-prime borrowers in the last six months of 2007.

“Project Lifeline” is set to extend help to homeowners who have conventional mortgages but whose mortgage payments are 90 days or more late.

Many homeowners with good credit borrowed against the value of their houses, but with home prices falling fast, some owe more than their home is worth.

It’s hope for the banks, not the homeowners. They’re trying to stem the tide of foreclosures.

Refinancing doesn’t change the amount you owe. Indeed refancing at a lower rate ensures it’ll cost you even more to get back to even.

Walking away from your debts is a lot easier in the US than here. The biggest thing that keeps people from walking away is the hit to their credit rating.

When you consider that many of those who took out sub prime mortgages already had less than perfect credit, that’s less of a golden handcuff than it might be for the general population.

So, can any solution that involves people still being upside down on their homeloan really work? Especaially one that means taking longer and spending more to get free?

-Rd

If everyone has a bad rating then it will become no big deal as credit ratings only really work where there are enough people with good ratings to make it worthwhile excluding the bad. Those with a mobile in the early 90’s will remember how Stubbs Gazette lost its fear factor when everyone who moved operator ended up in it for not paying the random bills that came after you had switched.

Switched to whom ??, we only had EirSmell in them days ???