HARP Part II New Update

Ever been to a bad movie squeal and wished you had just saved your money or got it at Red Box for $1 instead. Well, welcome to HARP part 2 or as I like to call it “Throw everything against the wall and see what sticks”.

For those that missed part one of HARP let me just give everyone the quick Reader Digest version. Soon after it became apparent that someone needed to do something to help struggling homeowners stay in their homes the Federal Government started coming out with great sounding programs like Home Affordability Refinance Program (HARP) , Home Affordability Modification Program and Home Affordable Foreclosure Alternatives( HAFA) which all falls under the Making Home Affordability Act(MHA..whew got it!). All of these programs were designed with incentive for both the borrower and lender to workout a mortgage plan that would keep homeowners in their homes or make completing a Short Sale less painful. The old HARP program was considered dead on arrival with only a small portion of the 7 million or so households in jeopardy of losing their home actually being helped.

Fast forward a couple of years later and we now have a new HARP program (introduced pretty close to election time I might add). So, what does this program do that the old HARP program didn’t do? Here we go:

1. Borrows can now refi even if they are more than 125 percent underwater on their home. The old program maxed out at 125 percent of a homes value.

2. Existing mortgage insurance can be transferred to the new mortgage

3. Appraisals can be waived in certain cases.   

What are the catches?

1. You must be current on your mortgage and have not missed any payments within the last year.

2. Your principle balance will not change. So, if you are $100,000 underwater guess what? You’ll still be $100,000 underwater in this program.

3. Your loan must be with Freddie or Fannie Mac. You can look up your loan here.

Bottom-line, I personally don’t think this program is going to help those who are really in trouble due to job lose or under employment. For the most part it’s more of the same. Hopefully this will get out to those few homeowners that can benefit. Executing these programs will be tough.

Need more information on this program? Click HERE

Want a free no obligation interview with me or one of my Short Sales specialists?

Call or email me now!

Chuck

Serving all of your Ashburn, Chantilly,Fairfax,Herndon, Reston, Leesburg, Mclean and Loudoun County area Real Estate needs