Unveiling a Mortgage Relief Plan
As I was watching early morning news this morning and I do mean early, there is tons of talk about the unveiling of a mortgage relief plan to be revealed later today. What I have found interesting is the different views that I heard. One gentleman said is it really a relief plan or is it the usual we’ll step in and attempt to bail out. With all the news on foreclosures, everyone is waiting to see what is truly going to happen.
Before I share what the mortgage relief plan is supposed to be do I want to say the market seems really bad for homeowners right now. I remember briefly hearing that the Mortgage Bankers Association reporting that home foreclosures hit an all time high. I continue to drive through our neighborhood to see what homes are for sale now that were not for sale two weeks prior. I read a story in our local newspaper earlier this week where this family was choosing between celebrating Christmas (purchasing gifts) or paying their mortgage keeping their home out of foreclosure. The story went on to share that how in the 6 and ½ years they have watched their payment skyrocket 66% to $2,454 because of home equity loans for repairs, delinquent fees and an adjustable mortgage rate that has risen twice in the past six months. Unfortunately this is probably more of the norm right now than being uncommon.
Will this couple be one of those that can receive help from this mortgage plan? I don’t know. From what I could glean from my research of this plan, seems as if the initiative is designed to put a 5 year “freeze” on teaser rates for some who face default on their subprime mortgages. Everyone would not be eligible of course. Seems the ones who are eligible would be if they are current with their teaser-rate payments and cannot afford higher interest payments would be eligible. Those who have been delinquent, would not be eligible. Says they can work it out with their lender on a case by case basis. Now maybe it is me, but, as I was reading this information I was thinking, the ones who are delinquent need help as well. What could they possibly work out with the lender when they are already dealing from a position of being upside down on their payment. I remember when I was a person that was in debt and talked with someone to help me, I felt as if I had to take whatever they offered because I was already delinquent. I would not have ever thought to propose another option because I was late on the current bill. How many people are going to be helped by this and will they be able to remain current on paying their mortgage without the increase in rates? I sure hope that a lot of people will be helped and able to keep their homes. Stay tuned and watch the news later today when this plan will be unveiled.
Taffy Wagner
