Foreclosure rescue: No help for you

A plan put together by U.S. Treasury Secretary Henry Paulson to stave off foreclosures leaves out a lot troubled borrowers.

>>Paulson divided subprime borrowers into four groups. The plan would be most geared toward those who can afford the mortgage now but won't be able to after the adjustment.

The other three groups are largely left out: Borrowers who can afford an adjustment; those who are already behind on their payments; and those who can refinance into a fixed-rate loan

According to the Mortgage Bankers Association, 5.12% of outstanding loans were in default in the second quarter, a rate about 17% higher than a year ago.

The plan would also seemingly exclude borrowers who hold option-ARMs that aren't subprime. These are loans that start with extremely low "teaser" rates before rising dramatically a few years into the loan.

More here: http://money.cnn.com/2007/12/03/real_estate/left_out.moneymag/index.htm?section=money_mostpopular

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Some rescue plan - excludes 3 out of 4 in this boat. The only ones I can honestly say I am glad he doesn't have a plan to help are those that bought homes as investments. I really have zero sympathy for flippers and investors. They are reaping what they have sowed IMO.

I think the only ones that should be "helped" (whatever that might mean) are those that were suckered into these deals by the likes of Countrywide, etc.

They were sure pushing hard for a long time. I know I was getting offers about 2X a week from various places trying to "assist" me with my mortgage.

In fact, I have no mortgage. They were looking for anyone they could get. It seemed to me it was irrelevant whether one owned a home or not.

I could see this one coming a long time ago and in fact told many not in invest in Freddie or Fannie Mae.

If you are able to afford to refinance and pay the bills than you should do it IMO. I agree with you!!

:dem: