U.S. HUD Secretary Shaun Donovan today announced an expansion of the Obama Administration's Home Affordable Refinance Program to include participation by borrowers who are current but up to 125 percent underwater on their mortgage.  The previous limit was 105%.  Borrowers whose mortgages are currently owned or guaranteed by Fannie Mae and Freddie Mac will now be allowed to refinance those loans according to the terms of the Home Affordable Refinance program established earlier this year, on Febraury 18, 2009.

For example if the property is worth $200,000, the borrower must owe $250,000 or less, where previously the borrower must have owed $210,000 or less.

Read more about this HUD press release, HUD No. 09-104.

Posted by:  Dora & Vincent Kwok - Chandler AZ Real Estate Agents with
Home Smart Real Estate. We specialize in Chandler Real Estate and other
Southeast Valley homes (Ocotillo,Gilbert, Mesa, Tempe, Scottsdale, Queen Creek).
We can be reached at: Dora@KwokProperties.com or (480) 252-3396