Six of the nation's biggest mortgage servicers will be sending letters to homeowners who have fallen behind. Homeowners who do respond to the letter will then be evaluated. If their mortgage servicer believes they are financially fit enough to stay in their homes, the foreclosure proceedings will be put on hold for thirty-days while new terms are considered.
But not everyone will get a new deal. "If you're struggling and you don't have the capability to stay in your home, this won't help. And of course, if you want to walk away from the home and the mortgage obligation, there's nothing we can do to help you," said Treasury Secretary Henry Paulson.
Many homeowners in trouble will never even get the opportunity to buy some time. That's because today's program is voluntary. If your mortgage company decides not to participate, there will be no lifeline for you.