Unsecured Loans: asset-free opportunity for those in need

Struggling to connect with their delinquent customers, a group of six major mortgage lenders is teaming up with nonprofit groups to serve as a go-between.

As part of the program, borrowers who get behind on their payments will receive notice from a financial counseling service instead of the big, bad bank, said an executive with one of the lenders.

The plan is expected to be announced today by representatives of the Bush administration and the Hope Now coalition of lenders. Company officials could not speak publicly about the plan in advance of today's news conference in Washington.

Foreclosure typically begins at the 90-day delinquency mark, when borrowers receive a notice of default alerting them that they could lose their homes if they don't pay up. read more