As we reported last week, the Obama administration has rolled out another ‘save housing’ program.
As you read the details that follow (provided by Zillow, thanks guys!) the questions you have to ask yourself are:
1) How many owners will keep their underwater home? As you will read this new program is geared towards moving underwater owners to shorter term loans. To be clear, the home STAYS UNDERWATER! Inflated mortgage balances on shorter terms mortgages usually don’t result in lower payments.
2) If someone participates in HARP 2.0 what ‘relief’ does this really afford them? There is no guarantee that their house payments will be lower because the new HARP 2.0 program is designed to refinance owners to shorter term loans. (Remember, this program is for UNDERWATER owners…if they re-fi to a shorter period won’t that often make they payment HIGHER not lower…even with the lower rates?)
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3) There are 11,000,000 underwater owners in the US. (and growing). Estimates are that HARP 2.0 can only ‘help’ 10% of those underwater owners…big reason, the owner must be current on their mortgage. If you are late, don’t apply. Of the estimated 11 million underwater owners nearly half are already behind on their payments, in default.
4) HARP 2.0 has nothing to do with homes already foreclosed. There are millions of homes readying to become REO listings over the next 12-24 months. Millions of homes that will be put for sale and discount prices. What effect will this have on property values?
5) Did HARP 1.0 work? The HARP program in its current form has fallen well short of its intended target of 4-5 million homeowners, helping just 894,000 of which only 70,000 were significantly underwater.
So, I ask you….is the new HARP 2.0 offering Hope or will this program follow the same path as all the other programs and be seen as Hype?
READ ALL THE DETAILS OF HARP 2.0, WATCH THE VIDEO <---------Click Here NOW!
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