Henry Paulson to Announce a Foreclosure Rescue Plan

Within the hour, Secretary of the Treasury Henry Paulson is due to announce the Foreclosure Rescue Plan. This plan is aimed at temporary relief to homeowners in foreclosure.  It mandates a 30 day “time-out” for those who are 90+ days behind in their payments. These 30 days will give the homeowners in default time to negotiate a win-win solution (or any kind of solution) with their bank. For now, Bank of America Corp., Citigroup Inc. and four other U.S. lenders will announce their alignment with this new plan.  It is not yet clear if other lenders will follow suit.  My guess is that they most certainly will.

More on this tonight!

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