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California lenders agree to freeze rates

December 2nd, 2007 3:55 PM by Lehel Szucs

It looks like some good things are happening for those that may need help.  I am sure there will be much more about this in the days to come.

Nov 20, 2007 - Knight Ridder Tribune Business News

Nov. 20--In an unprecedented move designed to save thousands of California homeowners from foreclosure, Gov. Arnold Schwarzenegger announced a deal Tuesday with four mortgage lenders to freeze adjustable interest rates for some of the state's highest-ri k borrowers.

The state's agreement with Countrywide Financial Corp., GMAC Mortgage, Litton Loan Servicing and HomeEq Servicing covers more than 25 percent of California's subprime mortgage loans, which generally involve homebuyers with weak credit and require period c increases in payments after initial low-teaser rates. The deal brokered by Schwarzenegger requires lenders to freeze low interest rates for subprime homeowners who reside in their property. "To lose your home, as probably everyone knows, through a foreclosure is an emotional crash and it sometimes takes years to recuperate from," Schwarzenegger said.

"But we don't have to sit idly by to watch the American Dream become the American Nightmar ." Read more in Wednesday's Bee.

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Posted by Lehel Szucs on December 2nd, 2007 3:55 PM

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