Mortgage Rate Freeze: Can Help Reach Many?
Posted By Administrator
Date: July 8th, 2008
Category: Credit Management News, Financial News
The recent ARM interest-rate freeze was designed by the Bush administration to serve as �a framework to help preserve communities by preventing foreclosure.� While this may sound very compassionate and suggests help for thousands of homeowners, many believe otherwise.
Interest.com reports that the rate freeze could save some but certainly not all subprime borrowers.
Homeowners whose adjustable-rate loans have already reset or are behind on their payments will find it impossible to meet the strict eligibility requirements which include the following:
� Have a 2/28 or 3/27 adjustable-rate loan
� Still be paying the initial interest rate
� Be up-to-date on your payments
� Be unable to afford the payments when they adjust to a higher rate
� Live in the house
� Have taken out your mortgage between Jan. 1, 2005 and July 31, 2007
� Be expecting your interest rate to adjust or reset for the first time between Jan. 1, 2008 and July 31, 2010
I have to agree that the above criteria are quite strict for most homeowners to qualify. Consider for instance the requirement of up-to-date payments, we know most homeowners are not keeping up with their payments and given this reality, they will be outright disqualified. If the present administration really wants to offer help, maybe they should review the requirements and adjust them accordingly so more people could avail of the rate freeze.