Six of the nation’s largest mortgage lenders bowed to government pressure and joined forces to give all homeowners who are seriously delinquent on their loans another chance. The lenders have agreed to freeze foreclosures for a month to give borrowers and lenders time to work out a repayment plan.
Named Project Lifeline, the initiative is a step-by-step approach for homeowners who are 90 days or more behind in their mortgage payments, a circumstance that already puts them in serious risk of losing their homes. These borrowers — many of whom have not contacted their lender — could begin receiving letters from them as soon as this week.
“Project Lifeline is aimed at homeowners who face a real risk of losing their home but have not yet addressed the problem,” Secretary Henry Paulson said. “For whatever reasons they have not yet taken action. Our hope is that today’s announcement will reach them and they will reach out immediately for help, especially now that the foreclosure process is upon them.”
“These efforts are to help American families who both want to and can, through a loan modification or refinancing, stay in their homes,” he added.
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