December 5th, 2007 11:53 AM by Lehel Szucs
In case you missed what is going. There is a lot of work that may help some borrowers that are in trouble. It looks like help will only be available to some and the process will likely not be easy. Read below:
The Bush administration and major financial institutions are close to an agreement that would temporarily freeze mortgage rates for home owners with spotty credit histories.The agreement is designed help the 500,000 subprime borrowers whose mortgages are resetting and are likely to result in foreclosures, threatening the broader economy.A sticking point is which homeowners would qualify and how much they would have to pay to refinance or freeze their loans, sources close to the discussion say.Treasury officials say financial institutions are likely to create a set of criteria based on income, credit-worthiness and the amount of equity borrowers have in their home. They will then divide borrowers into three groups: those who can continue to make their payments even if rates rise; those who can't afford their mortgages even if rates stay steady; and those who could keep their homes if the maturity date of their mortgages were extended or the interest rates remained at the teaser rates.Only the third group would be eligible for help.
This article is from: Daily Real Estate News | December 3, 2007White House, Banks Hammer Out Foreclosure Plan