The Real Deal Miami

Critics slam federal plan to delay foreclosures

February 13, 2008 06:21PM

A Bush administration plan to aid homeowners threatened by foreclosure,
called Project Lifeline, has drawn criticism from members of congress
and Wall Street analysts. The plan would allow borrowers at least three
months behind on their mortgage payments to apply to their lender for a
30-day pause on foreclosure proceedings. During the extra month,
borrowers could try to modify their loans or refinance their house in
order to avoid foreclosure. Critics said that while the plan would be
helpful, its impact will be limited.