Bush Outlines Mortgage Relief Plan
President Bush today announced a relief plan for as many as 1.2 homeowners who are struggling with adjustable-rate mortgages and in danger of losing their homes to foreclosure. Saying that "in recent years some lenders made loans that borrowers did not understand, and some borrowers took out loans they knew they could not afford," Bush outlined a plan includes a five-year interest rate freeze to qualifying homeowners whose adjustable-rate mortgages are set to increase in 2008 and 2009. Under these adjustable rate mortgages, homeowners typically enjoy low interest rates at the outset, but interest rates increase over the life of the mortgage, raising monthly payments by hundreds of dollars in some cases.
- Fact Sheet: Helping American Families Keep Their Homes (WhiteHouse.gov)
- Transcript of Bush's Announcement (WhiteHouse.gov)
- NY Times: Bush Announces Mortgage Agreement
- Real Estate Center: Foreclosure (FindLaw)