I read an article in the UT or Daily Transcript that said that the proposed loan freeze would help about 12% of those in San Diego, but I can’t remember if it said it would help 12% of those with variable rate loans or 12% of the total pool of San Diego mortgage holders.
Either way, this will do little to slow the current surge of foreclosures.
In my opinion, loan rate freezes will have an overall negative impact on the housing market over the next few years. Having the government move in and renegotiate these contracts adds another element of risk to the lenders. Borrowers will pay for the added risk.
