The Bush administration and six mortgage lenders announced a plan plan to bail out many homeowners that are now in danger of losing their homes in foreclosure. The so-called "Project Lifeline" would grant qualified individuals experiencing problems with loan modifications and beneficial refinancing. Borrowers who are more than 90 days late and fit the criteria would be sent a letter giving them a step-by-step approach that "may" enable them to "pause" their foreclosure for 30 days while potential loan modification is evaluated. Additionally, the new effort is set to help all mortgage - not just subprime - which signals that the government is finally realizing how large the problem really is.. let's hope that it works!

From the Wall Street Journal:
The Bush administration and six major mortgage lenders unveiled their latest response to the continuing turmoil in the housing market, offering to "pause" the foreclosure process for seriously troubled homeowners. Although the announcement of "Project Lifeline" was couched in tones of optimism, officials cautioned that it is only an incremental step that would not guarantee help for every homeowner facing the loss of their home.

"No program can bring every struggling borrower into the counseling and evaluation process, and we cannot help those who choose not to honor their obligations," said Treasury Secretary Henry Paulson. "None of these efforts are a silver bullet that will undo the excesses of the past years."