Tuesday, February 12, 2008
"Project Lifeline" Lenders New Plan to Reduce Foreclosures
The US Treasury department announced a plan known as "Project Lifeline" designed to help give distressed homeowners more time to work out payment plans and prevent foreclosure. Bank of America, Citigroup, Countrywide Financial, JPMorgan Chase, Washington Mutual and Wells Fargo have agreed to allow delinquent homeowners facing foreclosure a 30 day period to work out new payment terms. During this period, the banks will attempt to contact the distressed borrowers, and will "freeze" the foreclosure process while they attempt to find a repayment solution. Borrowers with both fixed and option arm loans for primary residences may qualify for Project Lifeline.