Did they do enough?
Did they do too much?
Email us your thoughts after reading this overview….
President Bush unstrapped a plan on 12/6/2007 that offers foreclosure relief to potentially 1.2M homeowners. It includes a temporary freeze on low, introductory mortgage-interest rates that could otherwise increase dramatically in the next few years.
But the plan has some restrictions…do you think they are good or bad? Email us your opinions….read on.
The plan excludes anyone more than 30 days late at the time the mortgage would be modified or anyone who has been more than 60 days late at any time within the previous 12 months. According to reports, it also covers borrowers with adjustable rate mortgages (ARMS) resetting in 2008 and leaves out any who are judged capable of continuing to make mortgage payments at the higher reset rates.
But you should know that there are 2.2M borrowers with sub-prime ARMS that are expected to reset through the end of 2008. According to an analysis made by Barclays Capital, only 240,000 of those 2.2M loans would be covered by this plan.
Some industry experts called this “a step in the right direction” and President Bush said “there is no perfect solution”.
The plan applies to loans originated between Jan.1, 2005 and July 31, 2007 that reset between Jan.1, 2008 and July 31, 2010. But the aid will only come to those who ask for it.
Congress could also help by acting quicker on passing mortgage relief legislation, including the FHA Modernization bill, the change in tax code and a bill enabling local and state governments to issue bonds to finance mortgage refinancings. All of these bills have been held up in Senate for weeks or months…shame shame!!
Please send us your thoughts…..