The Bush administration has come to an agreement with banking industry. In a time when the real estate market is in turmoil a compromise was reached to aid struggling homeowners who entered into dangerous loans.
"It would freeze introductory "teaser" rates on subprime mortgages, preventing them from resetting to higher rates for five years...Under the administration plan, the rate freeze will apply to loans made at the start of 2005 through July 30 of this year and will cover loans that had been scheduled to rise to higher rates between Jan. 1, 2008, and July 31, 2010." - APThat means that many will be able to remain in their homes with consistent payments for years to come. The administration is orchestrating a formal announcement and not all loans qualify. More real estate news to come...
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