One Month's Rent?

Mike Mish Shedlock  Feb 12, 2008 3:48 pm

One Month's Rent?
 
Project Lifeline freezes foreclosures for 30 days.
 

 
Who can pass up one month's free rent on the place they currently live in? It's a great deal. I am talking about Bush To Put 30-Day Freeze On Foreclosures, dubbed "Project Lifeline". I talked about "Project Lifeline" yesterday in Project Lifeline: A Lifeline For Who?

New details are out today. Let's take a look.

Dubbed "Project Lifeline," the new program will be available to people who have taken out all types of mortgages, not just the high-cost subprime loans that have been the focus on previous relief efforts.

The program was put together by six of the nation's largest financial institutions, which service almost 50 percent of the nation's mortgages.

These lenders say they will contact homeowners who are 90 or more days overdue on their monthly mortgage payments. They will be given the opportunity to put the foreclosure process on pause for 30 days while the lenders try to work out a way to make the mortgage more affordable to the homeowner.

What A Deal!

Talk to your lender. Get a freeze. Then do what you need to do anyway: walk away. Inquiring minds may wish to consider the Moral Obligations Of Walking Away.

Government response is nearly always counter productive. At great expense, lenders are manning the phone lines, to take applications for free rent. In the end people will just end up walking anyway. Meanwhile it is perfectly clear panic is setting in, from bush, from Paulson, and from the lenders.

In the end, people will end up walking away.
Rate this article:  (0 Votes)
Comments (13) See All Comments »
02-13-2008, 1:55 am
1 year ago banks would be salivating at their mouths to take your home from you. Now they are actually letting you stay for free.

These guys must truly be desperate.

Isn't that already the 3rd of these emergency bill
Read More
02-13-2008, 7:58 am
Not only are the banks understaffed, look at the court system. Stop by any hearing room and look at the docket. Nothing but foreclosures. Rest assured any freeze on foreclosures or any program for adjustment of payments is for the benefit of the ba
Read More
02-13-2008, 10:28 am
Katie Couric took up this change in debt attitude on last nights show. She referred to it as an "Intentional Foreclosure" and they interviewed a lady who had bought a house near San Francisco to be closer to work. She is underwater almo
Read More
02-13-2008, 4:54 pm
Now the lenders are going to find out what these home debtors REALLY earn and what their assets REALLY are. No, there won't be any renegotiating. Just, "Sorry, we can't help you".
Read More
02-24-2008, 12:52 pm
The majority of defaults are not from "resets" but rather owners walking away from properties they (a) weren't qualified to buy in the first place and (b) now cannot refi. There's no question millions of applications were fal
Read More
discuss this article and more on the mv exchange
No positions in stocks mentioned.

Get real-time options trading ideas from Steve Smith, veteran options trader and newsletter author, plus let him show you the way to cut risk and boost your returns through the strategic use of options.  Click here for a free 14 day trial to OptionSmith by Steve Smith.



The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2009 Minyanville Media, Inc. All Rights Reserved.
Ticker Talk
Popular Tickers:
SPX »AMZN »SPY »
Select
  •  
Talk Now
Share this Talk on your site:
Send us your feedback

Our Professors

rss article alert