On Thursday, December 06, 2007, the Bush Administration have revealed their plan to freeze interest rates for five years for some homeowner’s who are having trouble paying for their subprime mortgages. It is expected for these rates to heavily increase in the following months. “We should not bail out lenders, real estate speculators or those made the reckless decision to buy a home they knew they could never afford. But there are some responsible homeowners who could avoid foreclosure with some assistance,” says Bush. He says that approximately 1.2 million people may be eligible to receive this aid and it may eventually help 300,000 families. The plan would apply to homeowners who got adjustable-rate subprime mortgages between Jan. 1, 2005, and July 31 of this year and are facing a sharp jump in their rates before July 31, 2010.
(http://www.washingtonpost.com/wp-dyn/content/article/2007/12/06/AR2007120600246.html?nav=rss_email/components)
Most of the homeowner’s who may be eligible for this type of assistance would be those who have enough money to pay for their mortgages at low rates but do not have enough money to afford to pay for the monthly increase in their payments. However, Republican lawmakers and their aides were skeptical about this plan because it might anger the homeowners who went through the trouble to stay out of payment issues. And now, the government was helping those who made negligent decisions and bought homes that were far beyond their means. I believe that this plan is fair only in some cases. For families who have trouble with their income and payments should go through an application process so that only the most eligible of the eligible can receive this financial help. And only those who obviously have not made any irresponsible decisions should be able to obtain aid from the government.
(http://www.washingtonpost.com/wpdyn/content/article/2007/12/06/AR2007120600246.html?nav=rss_email/components)
1 comment:
This plan sounds to me like a good idea, however, I agree with you that this should only be available for the qualified. If the government gives this help to just anybody, they are only asking for people to abuse that assistance. It's the same sort of concept as declaring bankruptcy on student loans. It's a concept meant to help everyone, but becomes a problem once it begins to be abused.
Post a Comment