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US banks join mortgage help plan | |
(about 7 hours later) | |
Six major US banks are taking part in an initiative to help homeowners struggling to pay their mortgages. | |
Bank of America, Citigroup, Countrywide Financial, JP Morgan Chase, Washington Mutual and Wells Fargo are those taking part in "Project Lifeline". | |
Backed by the US Treasury Department and Housing Department, people failing to pay their mortgages will have the foreclosure process halted for 30 days. | |
It is hoped that more affordable payments can then be negotiated. | |
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 | |
Project Lifeline extends the current assistance available to holders of sub-prime mortgages to those with all forms of home loans. | |
It will be available to those homeowners whose mortgage payments are 90 days or more late. | |
"Project Lifeline is a valuable response, literally a lifeline, for people on the brink of the final steps in foreclosure," said Housing and Urban Development Secretary Alphonso Jackson. | |
He added that the aim was to provide a temporary pause in the foreclosure process "long enough to find a way out" by allowing homeowners and lenders to negotiate more affordable mortgage payments. | |
The current sub-prime assistance plan is called "Hope Now". | |
The banks say this has helped 545,000 sub-prime borrowers in the last six months of 2007. |