Fed announced an initiative that would put some foreclosures on hold for 30 days. The Bush administration, trying to deal with a worsening housing slump, announced a new initiative today aimed at helping homeowners about to lose their homes. For qualified homeowners, it will put the foreclosure process on hold for 30 days.
Dubbed "Project Lifeline" the new program will be availabe to people who have taken out all types of mortgages, not just the high-cost subprime loans that have been the focus on previous efforts.
The program was put together by six of the nations's largest financial institutions, which service almost 50% 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 homowner.
yahoo finance/AP 2/12/08
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