The mortgage freeze unveiled by President Bush may provide only limited relief to thousands of financially strapped homeowners, and may not be enough to cure the foreclosure crisis, advisers who work with troubled borrowers in Middle Tennessee said.The Bush administration's plan, which would freeze the interest rates on many adjustable-rate mortgages at their lower introductory levels, excludes many who need help the most, including those in foreclosure and those already behind on adjustable-rate monthly payments, officials from several Nashville-area housing organizations said.The plan, which has the support of major banks, relies on borrowers and lenders to come together to revise terms of loans before adjustable loans accelerate — sometimes to double-digit rates.
FREEZE FACTS:
• The mortgage industry has agreed to freeze interest rates for many before their loans reset to higher rates.
WHO IT AFFECTS:
• Homeowners must be current on payments and their adjustable rate mortgages must still be under introductory rates to take part.
• The Freeze applies to loans made at the start of 2005 through July 30 of this year and scheduled to rise to higher rates between Jan. 1, 2008, and July 31, 2010.
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