The Bush Administration announced today a new initiative to help borrowers who are about to lose their homes. Qualified homeowners will be able to put the foreclosure process on hold for 30 days while they work with their lender to try to make the mortgage work for them. This program is for borrowers who are 90 days behind on their mortgage payments, and it applies to all loan types, not just the subprime loans. “Project Lifeline” is designed to help homeowners in this difficult time, before foreclosures raise even more.
“Project Lifeline is a valuable response, literally a lifeline, for people on the brink of the final steps in foreclosure,” Housing and Urban Development Secretary Alphonso Jackson, said at a joint news conference with Treasury Secretary Henry Paulson.
He said the goal was to provide a temporary pause in the foreclosure process “long enough to find a way out” by allowing homeowners and lenders to negotiate a more affordable mortgage.