Foreclosure Help: Options for Assistance

According to First American Core logic, the following cities were listed as the 10 most risky cities for foreclosure, as of Jan. 28, 2008:

1. Bakersfield, Ca
2. Stockton, Ca
3. Fresno, Ca
4. Warren, MI
5. Grand Rapids, MI
6. Riverside, CA
7. Sacramento, CA
8. Detroit, MI (down from #1 in 2007)
9. McAllen, TX
10. Youngstown, OH

A report released by First American Core Logic found that the risk of foreclosure has jumped 22% since last year and up 9% from just three months ago. Risk scores were based on job growth or loss, as well as incidences of fraud. Home price trends are especially important. Foreclosure risks are expected to continue to rise over the next 18 months, at the least.

Foreclosure Help

The major US mortgage servicers have agreed to be a part of Project Lifeline, a government-backed measure to help keep struggling borrowers in their homes. The project allows servicers to stop the clock on the foreclosure process for 30 days for people who are 90 days or more late on their mortgage payments.

Project Lifeline is not just for subprime mortgages, but for people with any residential mortgages for their primary place of residence. Homeowners who receive letters from participating lenders need to respond immediately there is only a 10-day window to response. The servicers may recommend financial counseling if they feel it's necessary. Both sides, the lender and the mortgagor, have a few weeks to reach some kind of agreement for resolving the homeowner's default.

Project Lifeline has been adopted by dozens of mortgage servicers belonging to the Hope Now Alliance. A list of these lenders can be found on the website: www.hopenow.com. There is also the hotline set up to give anyone calling mortgage help. That phone number is 888-995-HOPE.

Project Lifeline is an addition to an industry wide initiative, that was announced last December, which freezes interest rates and as a result of that monthly payments, on sub prime mortgages for qualifying homeowners for 5 years.