U.S. Senator Lamar Alexander (R-Tenn.) today urged Tennesseans concerned about a potential foreclosure to take advantage of a new program to aid homeowners. Project Lifeline – a partnership coordinated by the federal government among some of the nation’s largest mortgage lenders – will work with individual homeowners on a step-by-step plan to help them modify their loans and remain in their homes. The program would allow some homeowners to pause foreclosure for 30 days while they work with their lenders.
“With a single phone call to their lender, Americans facing foreclosure may be able to keep their homes,” Alexander said. “Project Lifeline is a good step toward boosting confidence in the housing market and helping preserve the American dream for those facing possible foreclosure.”
Project Lifeline will apply to borrowers who are at least three months late on payments, prime borrowers, and those with poor credit histories and will give step-by-step instructions to help.
Homeowners must do the following to be evaluated for a loan modification:
- Call their loan servicer within ten days of receiving the notice.
- Tell the loan servicer that they have received the letter, they want to stay in the home, and they are willing to seek counseling, if necessary.
- Provide updated financial information so the loan servicer can explore the appropriate solution.
To learn more about Project Lifeline, call 1-888-995-HOPE.
Alexander has been urging action to help homeowners and last month cosponsored legislation (S. 2566) introduced by Senator Johnny Isakson (R-Ga.) to provide a $15,000 tax credit over three years to anyone purchasing a newly constructed home, a foreclosed home, or a home where foreclosure is pending.