In an effort to save the mortgage industry, some lenders and servicers helped subprime borrowers by arranging repayment plans and modifications to loan payments in order to help forestall foreclosure. The San Jose Mercury News reports on the efforts that intensified on behalf of subprime borrowers as 2007 came to a close:
"The message is that as the year progressed, more and more borrowers were being helped either through repayment plans or modifications," Bill Longbrake, the Financial Services Roundtable's senior policy adviser and the report's author, said in a telephone interview.
However, for many subprime borrowers this may only delay the inevitable. The truly helpful path for most subprime borrowers is to refinance out of an ARM and into a fixed rate mortgage.
Yes, a fixed mortgage just might do the trick. But is that a feasible plan of action? I don't know for sure, but at the rate things are going. I guess I would just have to keep my fingers crossed.
Posted by: Jay, writer MemberSpeed.com | February 8, 2008 6:10 AM | Permalink to Comment