After the federal government announced Project Lifeline, a program that offers homeowners the chance to slow the foreclosure and default process and get a chance to catch up with their loan payments, many homeowners rushed to take advantage of its benefits. However, while the program does have some benefits and can help homeowners renegotiate loans and avoid foreclosure, it does nothing to counteract the impact of previous late payments on their credit score, which can be absolutely ruined.

One of the big things that Project Lifeline offers homeowners in default is a foreclosure freeze, where they can halt proceedings on their property and work out a deal with the lender to make up payments and catch up on their loan. However, many homeowners don’t seem to realize that they need to actively contact their lender to enact the freeze; some seem to believe it is automatic. The problem here lies in the fact that while the program has been enacted, there is still no one telling defaulted homeowners how to take advantage of it—they are largely on their own.

People also don’t realize that the freeze is temporary. It is a chance for homeowners to get back on track, and will not halt a foreclosure indefinitely. Many are clamoring that there needs to be a way for homeowners to learn about the details of Project Lifeline, including how to right their credit and really use it to its fullest advantage. Otherwise, many are pointing to the fact that it is simply another empty effort to help those in need.