More on the Hope Now Deniallance: Sorting them Out
Posted by: admin in Real Estate and MortgagePerhaps the most useful and succinct description of the Sub-Prime ARM Freeze we’ve seen, from Calculated Risk: [Treasury Secretary] Paulson clearly defined the group of borrowers that are being targeted for modifications: Homeowners with “steady incomes and relatively clean payment histories who could afford the lower introductory mortgage rate but cannot afford the higher adjusted rate”. Whenever the freeze ends, most of the homeowners in the defined group will still face foreclosure. So the purpose of this plan is clear - since the industry lacks the infrastructure to handle the work load, this guideline helps decide which loans to foreclose on now, and which loans to foreclose on later. Emphasis ours. Sounding less like a rescue and “keeping the dream alive” and all that, isn’t it? For more visit Source:www.behindthemortgage.com
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