This week, President Bush announced his plan to help homeowners struggling to pay their mortgages and facing foreclosure.
The plan includes a five-year freeze for interest rates on certain mortgage loans, but many critics have written the plan off as too little, too late.
If you need help stopping foreclosure, then bankrutpcy may be able to help.
This entry was posted on Thursday, December 13th, 2007 at 3:10 pm and is filed under Home Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
The plan involves allowing lenders to “freeze” certain mortgage rates that are scheduled to reset between Jan. 1, 2008, and July 31, 2010. The “freeze” will last for five years. The idea is that if borrowers are given a little breathing room, the number of foreclosures can be held down.Most of the loans that will reset in the next two years were long ago bundled into securities and sold to investors. The value of these securities has already fallen. A freeze in interest rates would reduce the value of these investments even more. So some investors will consider going to court in order to stop the plan to freeze rates. Other investors have decided that fighting the freeze will only lead to more foreclosures