19 Mortgage Companies agree to put foreclosure on hold

In a major move, the nation’s leading servicers and lenders of subprime loans have announced a plan to help delinquent borrowers.

The group, made up of loan servicers and lenders responsible for nine out of 10 subprime loans, has agreed to hold on foreclosure proceedings for up to 30 days as a well to help delinquent borrowers come up with an alternative.

The initiative, called Project Lifeline, was created to assist people 90 days or more behind on mortgage payments. It was announced last week.

The lenders are:

· Bank of America

· Citigroup

· Countrywide Financial Corp.

· Chase

· Washington Mutual

· Wells Fargo

In the plan, eligible borrows will have the option to modify the loan with new terms in order to catch up on payments.

The lenders are also members of the HOPE NOW coalition, created by the Treasury Department to accelerate 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 nearly all loans, including prime, alt-A, and second-lien mortgages.

In a press release, the Project Lifeline initiative will include every member of the HOPE NOW coalition — an additional 19 lenders and loan servicers.

Borrows who are seriously delinquent with the member lenders may receive letters notifying them of the program. They will need to call their mortgage company or broker within 10 days, agree to participate in financial counseling and provide financial information.

A loan that is 90 days or more delinquent is eligible for Project Lifeline unless the borrower is in active bankruptcy, if a foreclosure sale date is less than 30 days away, or if the home is an investment property or vacant.

Information about the HOPE NOW and Project Lifeline programs is available online at www.hopenow.com or by phone at (888) 995-4673.