I don't know how much this will help folks who took out their mortgages before home values plummeted. We put about $12K down on a $207K home and paid off another $15K during the first five years, but now that our ARM is about to reset, our home value is not much more (maybe even less) than the amount we still owe: $180K.
I know we didn't make the smartest decision going with an ARM and paying such a small percentage as a down payment, but I've heard much worse: 0% down and interest-only ARMs. How are those folks going to be helped with a 30-year up to 90% of the value of their home, when they probably owe more than 100% on their home?
I don't qualify for the relief listed because I'll be able to afford the ARM adjustments just fine even though I can't refinance to a 30-year fixed as planned. But I do wonder about people that are worse off than me.
Maybe I'm misreading the article...
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