Subprime Hotline is HOT
December 13, 2007
President Bush recently announced the creation of a national hotline for those individuals who are under sub-prime mortgages. The phone line was set up to help the 1.2 million people currently estimated to be under sub-prime mortgages. As of 11 December the hotline has already received over 45,000 calls. The program announced by the President is called Hope Now.
The President also revealed his plan to help sub-prime borrowers. The plan which is supported by most major home mortgage lenders will freeze interest rates on some below prime mortgages before they reset to higher interest rates.
The plan is not without its critics who assert that the plan still leaves hundreds of thousands of people at risk. Critics also state that the plan will only stop a small number of the estimated foreclosures which have already reached record levels.
People using the hotline (1-888-995-HOPE) receive basic foreclosure prevention information and counseling. However, they must contact their individual lender to see if they qualify for the loan modification program.
In addition to the new hotline, thousands of letters are being sent out to those individuals who may be at risk of losing their homes when interest rates reset. These letters contain information on how the homeowner can begin to plan for the reset