Key Lenders Announce Foreclosure Freeze
A new program announced today is aimed at helping all homeowners (not just subprime mortgage holders) avoid foreclosure and negotiate with lenders to stay in their homes. Under "Project Lifeline" -- announced by six of the biggest home loan servicers and the U.S. Departments of Treasury and Housing and Urban Development -- qualifying homeowners who are in imminent danger of losing their homes will be allowed to pause the foreclosure process for 30 days, during which they can negotiate more manageable repayment options with their lenders. U.S. Treasury Secretary Henry M. Paulson stated that "Project Lifeline is aimed at homeowners who face a real risk of losing their home, but have not yet addressed the problem." Reuters reports that "The plan is being undertaken by six mortgage lenders that said they service about 50 percent of U.S. mortgages -- Bank of America, JPMorgan Chase & Co, Citigroup, Countrywide Financial, Washington Mutual and Wells Fargo." In 2007, foreclosures were up 75 percent nationwide.
