Dec 06 2007
ARM Rates on the Verge of Freezing
President Bush is said to be signing a new bill that will allow (force) mortgage companies to freeze arm rates. As discussed in a previous article on this site, this will probably have some ramifications for previous owners that have already foreclosed on their properties. I can imagine that there will be a lot of people looking to cash in on this new bill. This bill will freeze current ARM mortgage rates for a length of up to 5 years so that income can possibly catch up to the interest rate that is being charged.
The way the bills is being signed is such that it will affect those that are currently not defaulting on their loans, but would not be able to survive a future increase in interest rate. Those that are currently defaulting on their loans will not qualify. This should help millions of Americans keep their homes, while we should see a decent amount of foreclosed homes until all the kinks of the system are worked out. Foreclosed homes are expected to increase next year, but should eventually taper off if this bill serves its actual purpose.
Expect a follow up as the bill is signed and dissected.
[…] and foreclosures. Our first article on this issue can be found here, and our first follow up here. « ARM Rates on the Verge of […]