Bush Administration Announces Plan to Freeze Home Foreclosures for 30 Days

WASHINGTON (KAIT) - The Bush Administration has announced a plan to suspend home foreclosures for 30 days.

The plan, known as Project Lifeline, will allow overdue homeowners to suspend foreclosures for 30 days while trying to work out more affordable terms with lenders.

"Project Lifeline has the potential to offer new solutions to responsible, able homeowners who want to keep their homes," Treasury Secretary Henry Paulson said.

It's not yet known how many homeowners will be covered under the plan, but the proposal suggest gullibility is aimed at those who are 90 days or more behind.

Six of the largest lenders will be involved initially:  Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., JPMorgan Chase & Co., Washington Mutual Inc. and Wells Fargo & Co.

The plan is another step in the Bush administration's Hope Now Alliance, which includes lenders, nonprofits and investors.