Bush mortgage plan will help in Weld, lenders say, an article from The Greeley Tribune, reports that Steve LaForest, owner of Mortgage Services, LLC, said the Bush plan to freeze rates on certain subprime mortgages for five years will help quell future foreclosures in Weld and give the housing market time to fix itself. He said, "It will definitely help a lot of people out. If they can continue their payments as they are now, it will keep them in their homes." In 2007, Weld County is on track to have about a 35% increase in foreclosures from 2006. The Weld County Foreclosure Prevention Task Force has been meeting over the past few months to see what can be done. The task force is still in its beginning stages but is making headway, according to Jeannine Truswell, executive director of United Way of Weld County and a member of the task force. She said the task force has been analyzing the services available in Weld and finding out where there might be gaps in services.
http://www.greeleytrib.com/article/20071207/NEWS/112060117/-1/news
President, critics agree proposal isn't perfect, an article from MSNBC.com, reports that President Bush acknowledges that the plan is "no perfect solution." The proposal negotiated by the Bush administration to freeze the low introductory rates on subprime loans appears that it may help only some of the homeowners who face large increases in their mortgage payments. After the freeze, they could be back in the same position again. According to President Bush, 1.2 million homeowners could be eligible for relief, which includes the rate freeze and helping people refinance into more affordable mortgages. The Center for Responsible Lending, a group that promotes homeownership and works to curb predatory lending, estimates that only 145,000 households will qualify for the rate freeze because the criteria is too strict. The reasoning behind the administration-negotiated plan is the five-year freeze will buy time for housing sales and prices to increase again. A rebound like this would enable homeowners to refinance their current adjustable rate mortgages into fixed-rate loans with more affordable monthly payments.
http://www.msnbc.msn.com/id/22136965/
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