Gan
02-12-2008, 08:04 AM
WASHINGTON (CNN) -- The Bush administration will announce an expanded plan Tuesday for lenders to help homeowners by temporarily suspending foreclosures for people facing the imminent loss of a home, a source familiar with the plan said Monday.
Secretary of the Treasury Henry Paulson and Secretary Alphonso Jackson of the Department of Housing and Urban Development will announce the proposal, the source said.
The plan involves major lenders who have agreed to widen their effort to help borrowers, according to the source, who spoke anonymously because the plan has not been officially announced.
The plan, called Project Lifeline, will allow overdue homeowners to suspend foreclosures for 30 days while lenders and borrowers try to work out more affordable terms.
The plan initially will involve six of the largest mortgage lenders -- Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., JPMorgan Chase & Co., Washington Mutual Inc. and Wells Fargo & Co.
It's not clear how many homeowners will be covered under the plan, but the proposal is aimed at delinquent homeowners whose mortgages are 90 days or more past due.
The plan builds on progress begun by the administration's Hope Now Alliance, which includes lenders, investors and nonprofits.
Hope Now was announced late last year and involves freezing the interest rates of borrowers with adjustable rate mortgages.
The White House would not comment on the plan.
http://www.cnn.com/2008/POLITICS/02/12/foreclosures/index.html
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In some cases it will allow the homeowner to have some extra time to negotiate an exit strategy or salvage the mortgage.
In other cases it is just postponing the inevitable. And of course there's no recourse for those already past forclosure or who have simply walked away from their homes.
I like it that the lenders, who were the ones slinging loans from the hip to begin with, are not being bailed out by or with our tax money. The lenders are the ones who stuck their chin out there, its time to take their licks.
On a final note I will say that its a smart move by the lenders (and not the only plan being acted on I might add). As the old saying goes, 50% of something is better than 100% of nothing.
Secretary of the Treasury Henry Paulson and Secretary Alphonso Jackson of the Department of Housing and Urban Development will announce the proposal, the source said.
The plan involves major lenders who have agreed to widen their effort to help borrowers, according to the source, who spoke anonymously because the plan has not been officially announced.
The plan, called Project Lifeline, will allow overdue homeowners to suspend foreclosures for 30 days while lenders and borrowers try to work out more affordable terms.
The plan initially will involve six of the largest mortgage lenders -- Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., JPMorgan Chase & Co., Washington Mutual Inc. and Wells Fargo & Co.
It's not clear how many homeowners will be covered under the plan, but the proposal is aimed at delinquent homeowners whose mortgages are 90 days or more past due.
The plan builds on progress begun by the administration's Hope Now Alliance, which includes lenders, investors and nonprofits.
Hope Now was announced late last year and involves freezing the interest rates of borrowers with adjustable rate mortgages.
The White House would not comment on the plan.
http://www.cnn.com/2008/POLITICS/02/12/foreclosures/index.html
________________________________________________
In some cases it will allow the homeowner to have some extra time to negotiate an exit strategy or salvage the mortgage.
In other cases it is just postponing the inevitable. And of course there's no recourse for those already past forclosure or who have simply walked away from their homes.
I like it that the lenders, who were the ones slinging loans from the hip to begin with, are not being bailed out by or with our tax money. The lenders are the ones who stuck their chin out there, its time to take their licks.
On a final note I will say that its a smart move by the lenders (and not the only plan being acted on I might add). As the old saying goes, 50% of something is better than 100% of nothing.