Sub-Prime Freeze Doesn’t Cut It

I can’t believe the complaints I’ve heard about the current sub-prime rate freeze proposal!  I agree that there are people who genuinely need the help, and any relief we can see to try and slow down the national rate of foreclosure is a huge benefit, but the limitations are burdensome.

Did you put down more than 3% up front, hoping it would help secure your property?  Too bad, you’re not eligible.  If you have less than 3% equity in the home, you’re better off.

Have you worked hard to try and maintain that high credit score of yours?  Darn, you’re now ineligible.  Had you missed more credit card payments, you might have been more eligible, as high scores may inhibit eligibility.(DO NOT TAKE THIS AS A RECOMMENDATION TO SKIP PAYMENTS!!)

Are you and your next door neighbor in the same boat?  The plan is voluntary, so you may not be able to take part if your lender is not participating.  This means that the Joneses down the street may enroll while you’re left out in the cold simply because your lender isn’t participating.

The disparity is staggering, and for many it is seen as a reward for poor financial planning and spending.  This doesn’t even begin to touch on the investors who aren’t going to be seeing the returns they had expected when they bought in.  Time will tell what the next step is, and there’s plenty of people anxious to voice their opinions.  Want to add your .02 cents?  Leave me a comment!