Bush Subprime Mortgage Plan - Devil Is in the Details!

Yes I stole that title from the article I am about to reference. Why? Because it is a little catchy (especially for a Monday morning) and it is do true. Here are some excerpts from the Bankruptcy Law Network article...

Harvard Professor Elizabeth Warren says the plan “seems to be nothing more than a guideline for when some lenders or servicers might let some borrowers extend lower interest payments for a while before the interest jumps up later. The loan on the house stays the same, even the family owes much more than the house is now worth–a circumstance that will cut off any refinancing option and any real resolution of the problem. The plan doesn’t require any new laws or government intervention because no one is bound to anything.”

And...

There is no help in the plan for people whose ARM rates have already reset and payments increased, those who have already missed a mortgage payment or two and are facing foreclosure, and those who owe more mortgage debt(s) than the home is worth, according to the plan summary document.

You can read the entire article here...