Knoxville (WVLT) -- Project Lifeline is just the latest plan designed to help homeowners who are struggling to avoid foreclosure.
Almost every presidential candidate has already proposed a solution.
Volunteer TV's Rob Pratt has local reaction to the latest plan.
While many welcome any relief right now, at least one local expert doubts this plan or any other proposal will make much difference.
Treasury Secretary Henry Paulson stands with leaders of six major banks who have agreed to join the latest effort to help people who are close to losing their homes to foreclosure.
Director of UT's Center of Business and Economic Research Bill Fox says, "This is just kind of a public statement of what is in the banks best interest anyway."
Fox looks closely at the effect government plans like this will have on the economy.
Fox says whether it's this plan or the one proposed recently by Senator Hillary Rodham Clinton, the impact is likely to be small, "The number of people who qualify is relatively limited in each of the proposals that are out there. But I think we need to keep in mind that the industry, like the government, has an incentive for people not to go in foreclosure."
Project Lifeline covers all types of mortgages.
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