Submerged Homeowners Get Some Much Needed Support With HARP
The Obama Administration throws a badly-needed life preserver to “underwater” mortgage debtors, through HARP, (or Home Affordable Refinance Program). As a reward for continuing to pay their “upside-down” mortgage payments, HARP is being extended through December 31, 2013. Mortgages bought by Fannie Mae or Freddie Mac are eligible for modification, even though current appraisals are under what’s owed. As long as you’re current on your obligations, you’re free to work with any underwriters who offer the program, which relieves you from negotiating with current lien-holders, who have no motivation to orchestrate a new arrangement.
HARP, or the Home Affordable Refinance Program, allows you to refinance your mortgage at today’s lower rates, even if you don’t have equity. If you’re current on your mortgage, you’re probably eligible for HARP mortgages, even if you’re “upside-down” in your home. You can get a lower monthly payment or a shorter mortgage loan term with this stimulus program, designed to help soften the blow of the recent, major decline in housing values.
Would you believe that out of 10 eligible homeowners, 9 fail to take advantage of HARP, even though the program is a life-changing lifeline to those “underwater” on their home?
To qualify, borrowers mortgages must be current for the previous six months, with no more than one late payment, in the past year. Loans must have been purchased by Freddie Mac or Fannie Mae after May 31 of 2009, with loan-to-value ratios of at least 80%. There is no longer a 125% LTV cap on fixed mortgages, but there is a 105% LTV cap on adjustable rate mortgages. You may not need a new appraisal, in order to qualify.
HARP isn’t a solution to those that have recently lost employment or might be ready to start paying late on their loan. When you modify your mortgage under the plan, it must be on your own home of 1 to 4 units and you can’t wind up paying a higher mortgage payment, as a result. These are just a few of the stipulations with the plan, but it’s estimated there are many homeowners that fit the criteria.
The first step is to find out whether your mortgage qualifies as being guaranteed or owned by Freddie Mac or Fannie Mae. Both government-backed lenders have initiated free loan lookup tools, to help you determine whether your mortgage loan qualifies for HARP. Refinancing your mortgage under the Home Affordable Refinance Program requires you to use a mortgage lender or processor involved with the program.
Not all government-guaranteed loans are eligible for HARP. It’s essential to realize it’s a modification scheme designed for those who bought at the height of higher home prices and interest charges, through specific “conventional” loan options.
Depending on the mortgage processor, there may be an appraisal fee, underwriting fee and application fee, so these are expenses to be aware of, when taking advantage of the HARP options, available. It is estimated the program could help more than a million homeowners, who find themselves “underwater” on home equity and locked into higher interest rates.
Lance Mohr is a specialist in the Tampa real estate market. If you have any questions or are looking for hard working Realtor give me a call. For details on Richmond Place homes for sale or Tampa Palms homes for sale please visit our website at www.Tampa2Enjoy.com.
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