For those that have adjustable rate mortgage loans and are facing a reset rate in the next couple of years, help is on the way. It may take some time for everything that is in place to become readily available, but the fact is that help is available.
President Bush announced that he will place a freeze on adjustable rate mortgages that are likely to reset over the next few years. These rates have been at the heart of many foreclosures in the country. In fact, foreclosure rates have skyrocketed over the past year as the housing market began to weaken and the economy was not able to support it.
There are many homeowners who are struggling to make their payments right now because of the increase in their monthly payment due to the rise in their adjustable rate mortgage loan's interest. When this rate goes up, the monthly payment on the home will also adjust. Many homeowners were caught broadside by this increase in their payments mainly because they were not clearly explained the amount of increase they were likely to see. By luring homeowners in with lower rates (so low that they seemed non existent in some cases) lenders quickly adjusted these rates legally according to the terms of the mortgage. Quickly, loan payments went up and in turn plenty of homeowners could not afford these costs.
What happened next hit the country hard, too. As many homeowners' payments went up due to these adjusting adjustable rate mortgage loans, many could no longer afford their homes. In addition, the end result was foreclosure. With the ever increasing foreclosure numbers, it makes sense that people are looking for another solution. That solution may come in the way of the adjustable rate mortgage loan rate freeze. Hopefully the help promised will happen quickly and effectively so that people that need the help will see it in time to save their home.
If you are feeling the pinch when it comes to making your repayments on your mortgage loan then you should seek some expert independent financial advice. Contacting your bank and explaining your situation should be one of the very first things that you should do too. If you can show your bank that you are serious about making the repayments and are attempting to do so then in the majority of cases the bank will be sympathetic to your case, the last thing that they want is to have you default and become unable to pay at all.
