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Meltdown or FREEZE ?

The news today on the meltdown gone to a FREEZE....

If I heard this right, the next plan to help our foreclosure problem is focused on the loans made between 2005 and June of this year (lets call it the 30 months), and I am sure there will be criteria for those that fall into this time period, once they are weeded out, they will FREEZE the interest rate (ARM will not increase) for 5 years = (lets call it the 60 months).

So the formula is 30 / 60................. now FREEZE.

Yep, but what about all the others that are in foreclosure? The ones that are looking to be out in the cold during these winter months (which is most parts of the country will be a FREEZing time). What about the other owners that don't fall within this timeframe? And the big question is ..... will this even help stop the foreclosures or will it just prolong this meltdown for a few more years in the long run?

I know winter is almost here, and I wonder if the FREEZE is going to help things? What do you think?

*************Update: December 6, 2007

Bush Wins Agreement to Freeze Mortgages
Major mortgage lenders have agreed to lock in interest rates for five years on adjustable-rate loans made to financially troubled homeowners who obtained adjustable-rate subprime mortgages between Jan. 1, 2005, and July 31, 2007.

The deal with the Bush administration represents a compromise between mortgage firms and banks that wanted to freeze rates for one or two years and banking regulators who wanted seven years.

Mortgage lenders such as Countrywide Financial, big banks such as Citigroup, and nonprofit groups as well as Republicans and Democrats all support the agreement. The deal has the potential to head off a major foreclosure crisis, advocates say, considering the millions of borrowers facing a sharp increase in rates before July 31, 2010.

Source: Washington Post, David Cho, Neil Irwin (12/06/07)

*******************Another source: 1.888.995.HOPE

Hope Now Alliance Hotline http://activerain.com/blogsview/297761/Hope-Now-Alliance-Hotline

Information from: the Mother and Daughter Realty Team @ Perfect Financial Solutions 866-750-8282

Posted by Rosemary Brooks -Mother & Daughter (866)-750-8282 on 12/05/2007 11:16 PM

Comments (6)

meltdown, mother and daughter realty, perfect financial solutions, foreclosure

Originally posted at: Mother & Daughter Blog: Meltdown or FREEZE ?

6 Comments on Meltdown or FREEZE ?

DEC

2007

Again this is not the help people need only a step in the right direction. Lets see what commitment the government will make in the support of the good people of the US. Good luck and thanks for the post

First it was a meltdown. Now it is a freeze. What's next? Only God knows. I am just waiting to the outcome of this whole mortgage mess. It is really frustrating. Great post.

This really is a scary proposition - not sure how it will shake out.. It doesn't do me any good. Our refi was in March 2005 - and has already reset. Bummer

Now Have a Blessed Day,

John Occhi, Hemet REALTOR®
Mission Grove Realty

DEC

2007

Richard, I think we are in the same position, just waiting the news and reading all these "PLANS" that will help a handful when we have several barrels that really need the help. I think someone is asleep when they need to be figuring this out to help the mass majority. It is not going away on its own.

Lanre - yes they are only adding confusion. Meanwhile people are really suffering and the word "hardship" is a mild version of panic, suffer, pain, confusion, etc.

John, if like a crowd, you're safe because this is how many feel. I just wonder who is really coming up with all these "bandaids". Because these plans are not sticking to the sore.

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