National Foreclosure Workout Plan Announced

“PROJECT LIFELINE” announced today by the nations top six lenders servicing 50% of all mortgages provides for homeowners 90 days or more delinquent to renegotiate loans. Stock markets rise on this mortgage workout news today. Indeed.

BofA, Citigroup, Country Wide, J.P. Morgan Chase, Washington Mutual, and Wells Fargo have joined in promoting the workout plan, the “Hope Now Alliance.”  Other lenders will likely follow.  This is a smart move by lenders as 1.3 million ARM loans are expected to default in 2008, twice last years rate.

In the real estate trade this is called ‘taking the hit upfront’ which saves money and time.