US homeowners 'to get extra help'

Six major US banks are expected to announce plans to offer more help to homeowners struggling with mortgages.

Bank of America, Citigroup, Countrywide Financial, JP Morgan Chase, Washington Mutual and Wells Fargo are reported to be taking part in "Project Lifeline".

The plan is expected to be announced on Tuesday by the US Treasury Department and Housing Department.

Under the plan homeowners will be given 30 days extra to renegotiate their mortgage payments.

Project Lifeline

The six banks are already involved in a government programme called "Hope Now".

It helps those that took out sub-prime mortgages and are now facing a dramatic increase in payments.

The banks say they helped 545,000 sub-prime borrowers in the last six months of 2007.

"Project Lifeline" is set to extend help to homeowners who have conventional mortgages but whose mortgage payments are 90 days or more late.

Many homeowners with good credit borrowed against the value of their houses, but with home prices falling fast, some owe more than their home is worth.

(Published by BBC News, February 12, 2008)