Lenders Team up to Curb Foreclosures

A half-dozen of the nation's largest mortgage lenders are stepping up efforts to save home owners from foreclosure in a plan called Project Lifeline.
By: Marcy Gordon: REALTOR®Magazine
Six major lenders have agreed to allow seriously overdue home owners to suspend foreclosures for 30 days, giving them time to work out affordable loans.

The plan called Project Lifeline is being announced today by the Department of Housing and Urban Development.

Initially, the pilot program will involve Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., JPMorgan Chase & Co., Washington Mutual Inc., and Wells Fargo & Co.

All six lenders are currently involved in the Hope Now plan, the deal the Bush administration brokered last year to freeze rates on some high-cost subprime mortgages for five years to aid borrowers whose introductory rates had jumped.

The new plan applies to seriously delinquent home owners whose mortgages are 90 or more days past due.