American homeowners on the brink of losing their homes will be given a 30-day reprieve under new plans unveiled by the Bush administration to stop the number of foreclosures in the face of the US sub-prime mortgage crisis.

The new programme, 'Project Lifeline', will put the foreclosure process on hold for 30 day and will be available for people with all mortgages, including sub-prime home loans that were granted to borrowers with a poor credit history.

The plan was put together by six of America's largest mortgage lenders, responsible for more than 50 per cent of the country's mortgages who said they will contact homeowners who are 90 or more days overdue on their monthly mortgage payments.

Borrowers will then be given a chance to stay the foreclosure process for 30 days as they try to reach an agreement on their mortgage repayments.

Housing and Urban Development Secretary Alphonso Jackson, said: "Project Lifeline is a valuable response, literally a lifeline, for people on the brink of the final steps in foreclosure.”

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