You know a situation is bad if it has got the code name “Project Lifeline.” The Treasury Department and Department of Housing and Development revealed a plan last week which would allow overdue homeowners to suspend foreclosure for 30 days while they renegotiate their loans to more affordable terms. While much press has been devoted to the problems in subprime lending, this new plan would apply to at-risk borrowers with all types of mortgages. As home prices decline, many homeowners are now feeling the squeeze. Many now owe more than their homes are worth. It remains to be seen if this new plan will help stem the tide of foreclosures but one can hope.
Credit: Yahoo News article