The Rescue Plan

What's interesting about US Treasury Secretary Henry Paulson's efforts to stave off a foreclosure epidemic is how the plan was outlined the other day. It divides subprime borrowers into four groups: borrowers who can afford their mortgages now but won't be able to after the adjustment; borrowers who can afford the adjustment; borrowers who are already behind on their payments; and borrowers who can refinance into a fixed rate loan. Here's where it gets interesting, only the first group will be helped. The other are largely left out. Even more interesting is that it is being reported that homes that were bought as investments--as opposed to owner-occupied-- would be excluded. I have to admit I was surprised to read that "more than 50% of the increase in delinquent mortgages are actually investor-related."

It seems that half of the mortgage crisis meltdown was generated by investors trying to buy into a hot market. Unfortunately, as the frenzy cooled down, it put a chill into my livelihood and my ability to assist the families who have been most hurt by the crisis and who won't be helped by the rescue plan.