By Eileen Markey
Village Voice
Thanks for nothing. That’s what sub-prime mortgage victims in New York’s at-risk neighborhoods are saying about the Bush administration plan to freeze interest rates for homeowners whose sub-prime loans are set to balloon next year.
The plan, which asks for voluntary participation from banks that made the mortgages, will freeze interest rates on sub-prime loans for up to five years, meaning the homeowners would get to keep paying off their mortgage at the current interest rate, not the higher ones looming. But only homeowners who are less than a month behind on repayments, receive their mortgages in 2005, 2006 or 2007 and whose interest rates will not reset until 2008 are eligible.
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