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Monday, November 5, 2007

Subprime bailouts: Responsible borrowers express outrage




November 5 2007
Best-Mortgage-Companies.com

Not everyone is happy about mortgage lenders' latest efforts to help troubled borrowers. Responsible loan payers are crying foul about the breaks that delinquent borrowers are getting. They are expressing outrage to bailouts - whether they involve tax dollars or not - after Countrywide announced good deals for bad loans. The company said it will refinance or restructure loans or reduce interest for hybrid ARM borrowers whose rates are scheduled to reset. Countrywide announced it will rework loans, prime and subprime alike, for any troubled borrower, adjusting payments to reflect what individuals can afford. And no one will have to pony up prepayment penalties for retiring loans early. Many delinquent subprime borrowers who went for low teaser rates that shot up to unaffordable levels are now paying lower rates than borrowers who opted for the security of a long-term fixed-rate mortgage as part of a new round of foreclosure prevention packages. And responsible loan payers don't like it. They feel cheated and have little sympathy for troubled subprime borrowers.

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