Riverside Realtor Blog - Alma Dizon

Alma shares her experiences and observations as a Realtor in Riverside California.

Wednesday, December 05, 2007

Moratorium on Mortgage Rates Will Help Some People...

Word is out that there's the Bush administration has worked out an agreement with lenders to temporarily freeze mortgage rates for some homeowners, so that their mortgage payments won't adjust upward. According to one person familiar with the plan, the moratorium would "apply to borrowers with loans made at the start of 2005 through July 30 of this year with rates that are scheduled to rise between Jan. 1, 2008, and July 31, 2010." This will be of great help to people who have been able to make payments thus far but are facing a sudden increase of as much as 30% per month. The idea is to keep more people from going into foreclosure, so even though it won't help those already in danger of losing their homes, it should ease some of the pressure on real estate by keeping more short sales and repo's off the market.

The good news is that Treasury Sec. Paulson finally admits that the massive number of homeowners falling behind can no longer be dealt with as individual cases but must be recognized as a nationwide trend. Unfortunately, it's too little and too late for a lot of people.

The article ends with a gloomy outlook of impending recession, which has everything to do with consumer sentiment at the moment. A poll last month indicated that 40% believe that a recession is imminent. If that many people feel this way, it's no wonder that few are buying homes right now when so many need to sell.

AP article on Bush admin plan to freeze mortgage rates

21 Comments:

  • At 12/14/2007 5:58 AM, Blogger realsblog said…

    all things are clearly , don't know what i should say . thank for your sharing

     
  • At 1/21/2008 10:05 AM, Anonymous Albuquerque real estate said…

    Any chance that you know when this would start? It wouldn't affect new homebuyers, would it?

     
  • At 1/27/2008 9:43 PM, Blogger Nick said…

    Enjoyed reviewing your Blog Postings - thanks for sharing your realty thoughts.

    Nick

     
  • At 5/08/2008 12:36 AM, Anonymous portland real estate said…

    The link expired, but the plan applies to mortgages from 1/1/05 to 7/31/07.

     
  • At 6/10/2008 10:48 AM, Anonymous Rea Estate Raj said…

    As we now know, the moratorium on mortgage rates hasn't stemmed the foreclosure tide. Tres. Sec. Paulson did come clean about the scope of the problem, but a mere "pausing of rates" will do little to help those already behind.

     
  • At 8/12/2008 11:52 PM, Anonymous Property in Brazil said…

    I agree, this will be of great help to people who have been able to make payments thus far but are facing a sudden increase of as much as 30% per month. The idea is to keep more people from going into foreclosure, so even though it won't help those already in danger of losing their homes, it should ease some of the pressure on real estate by keeping more short sales and repo's off the market.

     
  • At 9/30/2008 3:13 PM, Blogger geovani said…

    President George W. Bush is expected to outline on Thursday a plan to freeze mortgage rates for five years for many U.S. homeowners facing sharp increases in their monthly payments.Final details of the plan are still being worked out after a trade group that represents large mortgage investors presented its framework for implementing a broad rate freeze to the Treasury Department late on Tuesday.
    -------------------
    geovani

    Opinion Leader

     
  • At 10/06/2008 2:38 PM, Anonymous David Claus said…

    There’s a secret a lot of online real estate sites don’t talk about: Stale real estate information. It can cost you hundreds-of-thousands of dollars. That’s why Realtor.com has an agreement with SoCalMLS to display actual sales prices in Riverside within 24 hours of a sale’s closing, property details and photos, and the transaction’s listing and buyer’s agents. It available through our Find Home Values tool. We recommend you work with a Realtor, while taking advantage of the accurate information on Riverside at Realtor.com as you navigate real estate. (www.Realtor.com)

     
  • At 2/03/2009 8:47 PM, Anonymous myrtle beach condos said…

    rates dont seem to be the problem, it seems to be the lack of liquidity

     
  • At 3/08/2009 5:20 PM, Anonymous richard stabile bergen county real estate said…

    You have a nice blog, are youstill active? I think that mortages are finally back again, with the government funding.

     
  • At 3/13/2009 8:13 AM, Blogger eyepatchman said…

    Hi all,

    Here's an interesting one for you.

    An analysis of the current economic crisis we are all unfortunately facing but looked at from a slightly different perspective.

    This analysis looks at past banking crises and how they have effected various aspects of the economy.

    It is titled The Banking Crisis - Where are we now? (follow the link should you be interested) and has particularly interesting points about how the previous banking crises has effected assets including property prices.

     
  • At 5/04/2009 1:07 PM, Blogger danny said…

    This is a great post. Interesting post.

    It speaks within in the business.

    I will follow this post. Hope everyone will too. Keep up the posts! I enjoy reading them!

     
  • At 5/17/2009 10:26 PM, Anonymous RM_Apply said…

    This article is very informative I got enlightened by this particular topic. I'll look up for this blog for updates. Thank you for sharing.

     
  • At 8/18/2009 7:22 AM, Anonymous Costa Rica Real Estate said…

    Old post but still an intersting reading indeed

     
  • At 10/13/2009 1:54 AM, Anonymous M3reo group said…

    Foreclosure real estate investing makes it possible to buy a property at very less prices than that prevailing in market.There is a great website with this kind of investing know how.

     
  • At 2/19/2010 9:43 PM, Blogger kanishk said…

    i just say to you love this post and each and every post here you have mentioned are is totally perfect and relevant. I would like to thank you.
    As its my first visit to your blog but now you can consider me as a regular visitor at your site.
    one sec thanks.
    Best Regard
    kanishk
    Antalya Homes Construction

     
  • At 3/30/2010 8:48 AM, Blogger Patrick said…

    This is good information. Great post regarding real estate. Thanks for this.

    Home to Sell

     
  • At 4/02/2010 4:04 AM, Blogger Patrick said…

    Thanks for the update!!! Wow, awesome real estate blog.

    How to Sell Home

     
  • At 8/29/2010 7:21 PM, Anonymous Real Estate Seattle said…

    The mortgage moratorium simply hasn't worked the way it was promised to. Rather than helping people avoid foreclosure, in the Seattle real estate market we've seen the moratorium simply postpone the inevitable.

     
  • At 3/29/2011 12:01 AM, Anonymous BK Lawyer said…

    Unfortunately this only provided a temporary solution for many who had mortgages that they could barely afford. The failure of many banks to approve loan modifications on many home loans resulted in the continued loss of homes. Even when these loan modifications where approved they provided minimal relief, as far as decreasing monthly payments.

     
  • At 4/07/2011 7:07 AM, Anonymous Minneapolis Real Estate said…

    I'll go with kanishk!!
    This is really a nice blog.

     

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