Government subprime (mortgage) plan "fix."

Well, "big brother" has now stepped directly into the mortgage mess of 2007 by unveiling a "foreclosure relief plan" that will help...so very few homeowners. The plan is to freeze interest rates for five years for those who qualify, but, while it is "a start in the right direction," it is widely regarded as being too limited (depending on who you wish to believe, the program could help anywhere from a hundred thousand to 1.2 million distressed homeowners) due to qualifying constraints.

In order to possibly qualify, you must:

• have an adjustable rate mortgage (ARM) originated between January 1, 2005 and July 31, 2007 that has a reset date of between January 1, 2008 and July 31, 2010.
• live in the home.
• NOT be more than 30 days late at the time your loan would be modified.
• NOT have been more than 60 days late at any time during the previous 12 months.
• NOT be judged capable of continuing to make your mortgage payment at the higher reset rate.
• NOT be judged incapable of affording the loan even at the current low introductory rate.

Acceptance into the government's plan is not automatic (homeowners must apply for consideration) and obstacles such as contractual obligations (between servicers and investors) and logistical difficulties are major hurdles to broad application and acceptance.

For those who do not qualify under the government's proposal, relief may still be available through FHASecure and other, lender-initiated refinancing efforts. The mortgage industry has a strong (financial) incentive to work things out with borrowers, if at all possible.