Every homeowner does not qualify for mortgage
bailout assistance, including those with fixed rate mortgage
loans. The plan was only designed to help homeowners that have
adjustable-rate mortgages (also known as ARM loans). In addition,
these homeowners must have taken out the loan between January
2005 and July 2007. Plus, they're interest rates have to reset
between January 2008 and July 2010. The stipulations are very
specific, and everything must match up precisely.
Other qualifications are that the homeowner
must still reside in the home, and that they can not
be so bad off financially that they can't handle the newly reduced
interest rate. Also, they can't be so well enough off that they
can afford the higher mortgage payments after a reset
There has been major controversy because of
these narrow-minded and silly-sounding qualifications. Many
critics feel that the mortgage bailout should apply to more,
if not all, of these homeowners. Their reasoning is that banks
mislead thousands of consumers into applying for these loans,
and that everyone with a ARM loan (regardless of the specifics)
should be relieved in some way or another.
Many speculate that their may be another mortgage
bailout plan for such individuals with different stipulations.
Perhaps, the plan initally released by the Bush administration
is just the first phase of a multi-phase proposal.
Those interested in finding out if they qualify
should contact their banks and/or mortgage brokers to discuss
the exact terms and conditions of the loan.
