Does HARP give hope or is it more of the same old same-old?
Are the recently announced revisions to the Home Affordable Refinance Program (HARP) going to make a MAJOR difference to the many underwater home owners that are being led to believe that they are being thrown a life-line? I don’t think so.
For those who are already facing foreclose the revisions are meaningless. Criteria number one is that the mortgage has to be paid current. Not happening if you are already facing foreclosure!
Your home loan must be held by Fannie Mae or Freddie Mac. If you wonder whether your mortgage is owned by one of these GSEs (Government Sponsored Enterprises) check here:
The “R” in HARP is for Refinance. Homeowners who are under water but current in their mortgage can apply to refinance under HARP. Guidelines for loan to value are being changed to favor the home owner. Fees are being reduced or waived. Appraisal requirements are being eased. The HARP program has been extended to the end of 2013. BUT…and it is a BIG “BUT”…the applicant for a refinance still needs to QUALIFY. That means that applicants who are struggling to make their mortgage payment now because of job loss or other legitimate hardship may not qualify. If a homeowner is not making the car payment or the credit card payments and has generally poor credit, what lender will step up to make that home owner a new loan?
Yes, the new HARP rules will help some home owners. By some estimates, there are 3,500,000 homeowners who are facing foreclosure and 15,000,000 whose homes are under water. Many of these homeowners will continue to struggle and will eventually offer their homes as short sales or face foreclosure.
For additional information about HARP changes, see this excellent blog post by Melissa Zavala, a Realtor from San Diego.
Comments(0)