President Bush Announces Foreclosure Relief Proposal

tag:blogger.com,1999:blog-1006826556636716021.post-5752915931432240032007-12-06T13:51:00.001-08:002007-12-08T21:07:19.950-08:00President Bush Announces Foreclosure Relief Proposal<a href="http://bp1.blogger.com/_vnJ9cPUZsSk/R1h4x1lgY0I/AAAAAAAAAHo/-ziAO_6WVis/s1600-h/foreclosure.jpg"><img id="BLOGGER_PHOTO_ID_5140991772236735298" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" alt="" src="http://bp1.blogger.com/_vnJ9cPUZsSk/R1h4x1lgY0I/AAAAAAAAAHo/-ziAO_6WVis/s320/foreclosure.jpg" border="0" /></a>Finally, after presidential candidate Hillary Clinton speaks of addressing the foreclosure dilemma throughout the United States, with California being one of the hardest hit states, it looks like the current administration might be ready to address this issue. This was announced today through the Associated Press. The proposal, addressing sub prime borrowers, may provide them with an interest rate freeze of up to five years. Home loans that increased their interest rates before January 1, 2007 and folks that bought way over their financial head even without sub prime programs will not be eligible. Folks that are eligible obtained their loans between January 1, 2005 and July 1, 2007. Bush indicated that 1.2 million people could be eligible for help, however only a fraction of those will be eligible for a rate freeze. Others would get help in refinancing with their lenders or moving into a home loan secured by the Federal Housing Administration. Finally, any help will only come to those that ask for assistance. Bush urged folks to contact a hot line number 1-888-995-HOPE. It is projected that this will provide relief to about 300,000 families. This is a voluntary private sector arrangement that involves no government money. Right now, nearly one million homes are in foreclosure. President Bush states that if this increases, this could have dire consequences on our economy. Ya think? Bush has been widely criticized as moving too slowly on this issue. Per the Ventura County Star, first quarter foreclosure sales in 2006 for Ventura County were 62. For the same period in 2007, foreclosure sales rose to 548. That is a increase of 784%. In Los Angeles County, foreclosure sales increased this first quarter at a rate of 675%. Santa Barbara saw an increase of 768%. Too bad this was not addressed when folks were being offered these impossible home loan programs. Countrywide is one of the current lenders offering to re-negotiate interest rates with borrowers, but as this author understands, this is only once the borrowers have entered foreclosure and not all borrowers will qualify for this assistance. If you either have or are going to face these types of rate increases over the next two years, it would be wise to be proactive and start looking for any available options and watch government statements. Letters of concern to local representatives, congress persons, and senators will help keep the focus on this serious issue that so many are facing. Checking out the above hot line number for further information may be helpful as well.My Mobile Notaryhttp://www.blogger.com/profile/11730213881640862936noreply@blogger.com