Homeowners threatened with foreclosure would in some instances get a 30-day reprieve under a new initiative the Bush administration announced Tuesday.
Dubbed "Project Lifeline," the new program will be available to people who have taken out all types of mortgages, not just the high-cost subprime loans that have been the focus on previous relief efforts.
The program was put together by six of the nation's largest financial institutions, which service almost 50 percent of the nation's mortgages.
These lenders say they will contact homeowners who are 90 or more days overdue on their monthly mortgage payments. They will be given the opportunity to put the foreclosure process on pause for 30 days while the lenders try to work out a way to make the mortgage more affordable to the homeowner.
Folks -- these borrowers are already 90 days behind. What does that tell you? They're poor credit risks. The chances of finding a solution are, well, pretty grim.
Here's what all of these guys should do if they are sincere in their desire to solve this problem. Go back over their records and look for anybody that was given a loan they probably shouldn't have. That's what they need to do to prove they want to make this a smaller problem.