Yesterday Hilary Clinton announced a plan that would cover both borrowers behind on their payments and those who were on time when it comes to their mortgages, specifically adjustable rate mortgages (ARMs). Her plan came a day before President Bush revealed his own plan that would also work over a 5 year period to freeze interest rates. Both come on the heels of large housing woes that are the result of eager folks signing up for long term mortgages with flashy low interest rates, only to have the rates hiked up the next year. Many cite the difference between the two plans comes in the depth of who would be covered:
Announcing a package of measures, Mr Bush said the threat of foreclosure was a “terrible burden for hard-working families and communities across the country”.Homeowners seeking assistance have three options. They can either have their payments frozen at an introductory rate for five years, refinance their mortgage at a lower rate or refinance through the Federal Housing Administration. The government estimates that 1.2 million homeowners facing “preventable foreclosures” would qualify for such help, although they will have to request assistance themselves.
All of this spinning and political what have you to the side, this an issue that effects people where their heart is, it effects their home. And more than that, it’s a complicated issue, that many folks (my self included) don’t have the background to understand fully.
Luckily, there are some folks out there trying to help those, who others are happy to take from. The Neighborhood Economic Development Advocacy Project is a group that works to gain financial justice within low income communities and communities of color. Give them a visit to learn how to be involved and for an in depth (and easy to understand) look at how the subprime madness is starting to have a major impact on minority and poorer communities, head over to Lines of Flight, a political travelogue that explores how we can escape oppressive systems.