Seems everywhere I look this morning I'm seeing reports about Bush's plans to freeze mortgage interest rates in an attempt to save millions of home owners from falling into foreclosure. About 2 million home owners took out sub prime mortgages between 2003-2005 and are now at risk of losing their homes as interest rates begin to reset in January 2008.
The three part plan will freeze interest rates for those scheduled to reset between Jan 1, 2008 and July 31, 2010, as well as provide more affordable financing options and provide help and funding for those trying to refinance. Unfortunately only about 750,000 will benefit from the the interest rate freeze because homeowners must be current on their mortgage payments in order to qualify. Another alternative will be Fast Track Refinancing, which will help homeowners with FICO scores lower then 660 qualify for refi's on their current home loans.
I was surprised to learn that about 50 percent of homeowners that go into foreclosure never even contact their lender to discuss possible option and alternatives. I guess there are a lot of mixed feelings that can contribute to this, from embarrassment to denial. The HopeNow alliance is trying to reach out to these homeowners by sending out HopeNow letters to over 300,000 borrowers to encourage them to call in and get advice and find out what options they may have. It's going to be interesting to see how this impacts the nation's foreclosure rate as well as real estate sales over the next few months.
The three part plan will freeze interest rates for those scheduled to reset between Jan 1, 2008 and July 31, 2010, as well as provide more affordable financing options and provide help and funding for those trying to refinance. Unfortunately only about 750,000 will benefit from the the interest rate freeze because homeowners must be current on their mortgage payments in order to qualify. Another alternative will be Fast Track Refinancing, which will help homeowners with FICO scores lower then 660 qualify for refi's on their current home loans.
I was surprised to learn that about 50 percent of homeowners that go into foreclosure never even contact their lender to discuss possible option and alternatives. I guess there are a lot of mixed feelings that can contribute to this, from embarrassment to denial. The HopeNow alliance is trying to reach out to these homeowners by sending out HopeNow letters to over 300,000 borrowers to encourage them to call in and get advice and find out what options they may have. It's going to be interesting to see how this impacts the nation's foreclosure rate as well as real estate sales over the next few months.
You can see the full story at CBS News
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