As if on cue for Thanksgiving, the Sacramento Bee today announced that governor Arnold Schwarzenegger had obtained agreement from four lenders to freeze rates on California subprime loans that are about to reset.  Hey, one more reason to celebrate!

The initial list of lenders include Countrywide, GMAC, Litton, and HomeEq—hopefully more will follow their lead—and the agreement applies to borrowers who  a) have not yet defaulted on their payments,  b) live in the home, and  c) can prove that they will be unable to make their new payments.  Rates could be frozen for 5 years or more, depending on the borrower’s situation. 

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