The current mortgage bail out program (aka) Rate Freeze Program introduced by the President Bush does not do enough for the majority of homeowners that will not qualify with the stringent guidelines set by President Bush. Many will be left worrying if they will still be able to afford their homes in the up coming months as their ARM loans adjust.

The program proposed will allow homeowners to freeze the original low introductory rate received when the loan was originated. This rate freeze could mean the difference between a homeowners ability to continue to afford their home mortgage payments, or face foreclosure. The eminent increase in adjustable rate mortgages could launch payments upword by as much as 60%. This dramatic increase could push millions of homeowners into foreclosure.

although I agree that the plan has a great deal of merit, and is definitely needed, the extremely tight qualification guidelines do not do enough to include the masses. If you have more than (3%) three percent equity in your home, or purchased or refinanced your home prior to January 2005, have been late on your mortgage, or if your home is non-owner occupied, you will not meet the guidelines of the new White House plan.

A large number of homeowners purchased their homes during the most recent real estate boom that started years before January 2005, many chose 5/1, 3/1 and 2/28 ARM loans, they too will suffering from the same payment increases as those who purchased after January 2005, so why are these homeowners being singled out.

With the foreclosure rate hitting record numbers and millions of homeowners facing eminent foreclosure, this rate freeze may fool homeowners into a false sense of reprieve. By the time many homeowners figure out if they even qualify for the rate freeze program, it may be too late. The Government needs to provide more information about their qualification guidelines. This would help millions of homeowners keep their most prized possession, their safe haven, and the place they call home. I urge any homeowner that has an ARM loan, regardless of when their loan is ready to adjust, to consider refinancing their mortgages right away.

With the uncertainty of the current lenders "credit crunch" problem, lenders are tightening guidelines by the day, making it even more difficult to qualify for a home loan. Higher LTV (loan to value) loans are being cut by five and ten percent, meaning that if you have little to no equity in your home, refinancing may not be an option. You may have to consider selling your home, and retunr to renting again.

With interest rates once again at record lows, some home buyers and homeowners are waiting on the fence to see if how low will they go. The market is to volatile, to gamble with interest rate that are in the mid to high 5% range . Do this could be a very expensive risk.

Take a look at this article issued yesterday by Bankrate.com

Here is a snippet:

"For people who want to refinance this year, now might be the best time to act, because lenders are likely to keep raising fees and tightening lending guidelines. Someone who qualifies for a mortgage now might not qualify a few months from now. When loan officers and mortgage brokers make this point, many of their customers brush it off as a hard sell. Doing so could be a mistake. Mortgage lending standards are indeed getting stricter by the week, and rates are low. Moulton describes how he recently quoted a customer a rate of 5.875 percent on a 30-year fixed. "The guy said, 'Do you think they'll go lower?'" Moulton chuckles in rueful wonder. "I said, 'If you like it, lock it.'"

It was good advice. Not only might that rate be fleeting, but there's no guarantee that loan approval will be forthcoming a few weeks or months from now."

Homeowner with loan balances $417,000 and under may find relief through mortgage lenders offering Fannie Mae or FHA financing options. Both FNMA and FHA offer high LTV financing with very relaxed guidelines to help homeowners improve their financial situations. They have a (make sense approach) to there lending guidelines, and share similar philosophies regarding the promotion of homeownership.

I have seen loans approved for borrowers who have had multiple mortgage lates, low fico scores, needed 100% of their equity, and had debt to income ratios as high as (60%) sixty percent. You can now find extremely competitive mortgage rates even for borrowers with tarnished credit , some below 6.5%.

If your loan balance is higher than the current conforming loan limits, there may be other options out there for you. One may be splitting your larger loan into two smaller loans, the first at $417,000 and a second mortgage for the balance. if this does not offer a viable solution, as a last resort, you can contact your current loan servicing company and negotiate a middle-ground payment between were your payment is now, and where it will be adjusting to.

Loan servicing companies do not want to add to their already huge inventory of homes they cannot liquidate. Having a homeowner that is willing to continue to make payments on their mortgage at a reduced payment should be a welcomed option.

In closing, It is my sincere hope that the current Bush administration takes a second look at the current Rate Freeze plan, and make revisions it to include the 68% of homeowner that will be left with limited options. We need a plan that includes the majority, not the minority of Adjustable Rate Mortgage loan holders across the country.

Live Life Powerfully!

Colin F. Watson

Angeles Investments Group/

Loans4heroes Inc.

310-672-9640 Ext. 210

cfwatson@loans4heroes.com