Too Late For Bush's Rate Freeze Plan In Palmdale

Palmdale and neighboring Lancaster account for nearly 20% of LA County's foreclosures, so it's a place that should be helped by the recent White House's plan to have lenders voluntarily freeze rates on adjustable mortgages, right? It's too little, too late in Palmdale, according to the LA Times, quoting experts who say the Bush plan only focuses on a "sliver" of the problem but ignores the bigger picture. For instance, people already in foreclosure or who have missed payments can't be helped by Bush's plan, according to the paper. Via the Times: "James Baker, a Lancaster agent, said years of unrealistic financing, such as loans with artificially low "teaser" rates, led to wild price inflation. For the market to recover, 'the median price has to come down to match incomes,' he said." More analysis on the Palmdale situation at LA LA Land.
· On a Palmdale street, foreclosure is in the air [LA Times]
· Bush's plan for an interest rate freeze get an icy response [SF Chronicle]