Loan servicers and lenders who handle about nine out of 10 subprime loans have agreed to participate in an initiative to help delinquent borrowers by putting foreclosure proceedings on hold for up to 30 days to evaluate alternatives. The Project Lifeline initiative, targeted at borrowers who are 90 days or more behind on their payments, was announced by six major lenders on Feb. 12 (see Inman News story). Those lenders -- Bank of America, Citigroup, Countrywide Financial Corp., Chase, Washington Mutual and Wells Fargo -- say eligible borrowers will be offered workout plans that could lead to formal loan modifications for those who can make payments on new terms for three months. The lenders are also members of the HOPE NOW coalition organized by the Treasury Department to speed up the process of modifying subprime adjustable-rate mortgage (ARM) loans before interest rate resets. While HOPE NOW members had been focused on modifying subprime ARM loans, Project Lifeline is targeted at ne...
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