Bail me out, and Ethel, and Gertrude, and…

Christina Benago of San Jose, CA this post is for you!

I was watching CNBC the other day and along came a color spot on the Subprime Plan. Congratulations to Christina on your recent 15 minutes of fame.

I found the video for you: http://www.cnbc.com/id/15840232?video=606283102

I understand you have three homes, one as your Principal Residence, and two as Assisted Care Facilities in San Jose. While I think it’s very neat you are helping so many elderly patients in the times of need, I believe you also financed those using residential mortgages, did you not?

From the video it sounds like like you bought using a 2/28 interest only loan?

I have some bad news for you, (and Ethel and Gertrude). You might want to get started packing. You don’t qualify. At least not on the homes that are most important – the Assisted Care Facilities. Also it seems your interviewer knows about as much as you apparently do – Diddly Squat. Does your business plan have an exit strategy? Does it also include where Ethel and Gertrude might live next?

I’m not sure Ethel and Gertrude have internet access so you might what to read this to them. One of the best things about the internet is you have easy access to plenty of valuable information. I have compiled a little reading list for you.

• Granny Dumping 2.0 – This might better explain where you are right now. You might be surprised to find out a fatal flaw in your business plan (from the start). I wrote that a while ago but it applies to you today.
• Do You Qualify for the Bush-Paulson Five Year Fix? – Rhonda Porter has one of the better spur of the moment explanations of The Plan and who it will help.
• Navigating the Rate-Freeze Maze – This is the Wall St Journal’s diagram of who is and who isn’t going to find a seat in one of the few lifeboats. Hat tip to Rhonda for that one too!
• Ten things to know about the Freeze – Tanta at Calculated Risk does an absolutely wonderful job sifting the crap and disseminating what is real.
• Rate freeze won’t help many in area – this is from Barbara Hernandez – she writes for our local paper It was in your paper last Friday – did you read it?

Well, that should get you started. Tell Ethel and Gertrude I said hello and happy holidays!