The government just announced the Project Lifeline plane to help homeowners faced on foreclosure. The all legal foreclose proceeds will be stopped for 30 and will give time to lenders and borrowers to negotiate the loans. All subprime borrowers with more than 90 days past due payments will have a chance to negotiate their loans and try to work it out with their lender.
"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.
A foreclosure procedure costs the banks around $50,000 and that will be a will be a good opportunity for both sides to negotita better terms on the loans.
The participants are: Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., JPMorgan Chase & Co., Washington Mutual Inc. and Wells Fargo & Co.
Aren’t these the largest subprime lenders on the mortgage market during the past few years?
Tuesday, February 12, 2008
Foreclosure proceeds stopped for for 30 days
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