Who Qualifies for Bush's Mortgage Bailout Plan?
Many say plan to freeze some homeowners' interest rates doesn't go far enough.
Dec. 7, 2007 — -- President Bush announced Thursday a plan to freeze interest rates for five years for some homeowners with adjustable rate mortgages they can't afford, the same day a new report showed foreclosure rates had reached a record high.
Some people say Bush's plan is not enough, while others say it goes too far.
The Treasury Department negotiated the deal with the mortgage industry. To get the mortgage rate freeze, you must meet these guidelines:
Grandmother Nettie McGee is in danger of losing the Chicago home she loves, so earlier this week, she went to Washington to share her story.
"Please help people like me, please, who wanted their entire lives to own their homes," McGee said at a congressional hearing.
McGee will not be benefiting from the president's new plan, however. The Bush bailout only applies to people whose mortgages adjust after Jan. 1. McGee's mortgage payments went up six days ago, from $707 a month to $912.
"I don't have it. I'm on a fixed income, Social Security," she said.
McGee originally had an affordable fixed-rate mortgage, but was forced to refinance when she found out she owed thousands in back taxes because of a city mistake.
"Well, I feel like I was treated wrong," McGee said. "They had me signing these papers."
The Bush administration says its plan will help 1.2 million people save their homes. But critics say it's more likely to help only a few hundred thousand.
"Homeowners are drowning and they're 20 feet from the boat and the administration threw out a 10-foot rope," said Sen. Richard Durbin, D-Ill.
New Jersey resident Marlo Patsko dislikes the deal for a different reason. She believes it rewards irresponsibility. Patsko says she and her husband were careful to buy a house within their means.
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