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Short Sales in Brentwood may not be the best answer for you - The Skinny on the New HARP Refinance Program

Reblogger
Real Estate Broker/Owner with Home Point Real Estate DRE # 01492725

Short Sales in Brentwood may not be the best answer for you!

A Short Sale is not always the best answer.  There is another alphebate soup of potential help for in trouble home owners.  Here is the latest on HARP.  It may work for some of you or it may not.  There are lots of conditions and hoops. 

If you want to review other options to a Short Sale in Brentwood or Beyond let me know.  However if you need to do a Short Sale in Brentwood or Beyond go to our web site Short Sales in Brentwood for Free Books and Reports on the Short Sale option. 

Original content by Melissa Zavala Cal BRE #01324959

HARP RefinanceThe HARP (Home Affordable Refiance Program) will be modified soon, government officials say. Many more homeowners will be eligible for the program. Here's what you need to know about these modifications:

HARP General Information

The Home Affordable Refinance Program (HARP) is a government mortgage program, first introduced in 2009 as a means to help underwater homeowners.

HARP allows “underwater” homeowners to refinance their homes, but there are many criteria necessary to qualify. HARP is for mortgages secured by Fannie Mae and Freddie Mac only. 

The Treasury Modifies HARP

When HARP was first launched in 2009, the government said that the program would help millions of otherwise-ineligible U.S. households to obtain a refinance of their mortgage. Unfortunately, only 838,000 homeowners have used the HARP program. As a result, HARP has been accused of missing the mark.

On October 24, 2011, there was a major announcement made about changes to the HARP program. The biggest change is that some homeowners who are significantly underwater  can now qualify for the program.

Here are some answers to commonly asked questions about the new revamped HARP program (HARP 2.0):

What Is HARP?

HARP was started in April 2009. The government calls it Home Affordable Refinance Program. 

In order to be eligible for the HARP refinance program:

  1. Fannie Mae or Freddie Mac must back your loan.
  2. Your current mortgage must have a securitization date prior to June 1, 2009.

If you meet these two criteria, you may be HARP-eligible. If your mortgage is FHA, USDA or a jumbo mortgage, you are not HARP-eligible.

How do I know if Fannie Mae or Freddie Mac has my mortgage? Contact the agents at Broadpoint Properties and we can help you to determine whether Fannie Mae or Freddie Mac has your mortgage. You can also use lookup tools on the Fannie Mae and Freddie Mac websites.  

If Fannie Mae or Freddie Mac holds my mortgage, am I automatically eligible for the Home Affordable Refinance Program? No. There are a number of criteria. Having your mortgage held by Fannie or Freddie is just the beginning.

What if neither Fannie Mae nor Freddie Mac has a record of my mortgage? If neither Fannie nor Freddie has record of your mortgage, you are not eligible for this refinance program.

Am I eligible for the Home Affordable Refinance Program if I'm behind on my mortgage? No. You must be current on your mortgage to refinance through this program.

Will the Home Affordable Refinance Program help me avoid foreclosure? No. The Home Affordable Refinance Program is not designed to delay, or stop, foreclosures. It's meant to give homeowners who are current on their mortgages, and who have lost home equity, a chance to refinance at today's low mortgage rates.

Is there a loan-to-value restriction for HARP? No, there is no loan-to-value restriction. All homes (regardless of equity) are eligible for the HARP program—just as long as the borrower and the loan meet all of the other criteria.

What's the biggest mortgage I can get with a HARP refinance? HARP refinances are limited to your area's conforming loan limits. In most cities, the conforming loan limit is $417,000. However, in San Diego County, the current confirming loan limit for a single-family home is $546,250.

I am unemployed and without income. Am I HARP-eligible? No. Income verification is required for the HARP refinance program.

While this program will open up opportunities for responsible borrowers who are significantly underwater, it is definitely not a salvation for most of those sellers participating in short sales. So, before you get super excited about your refinance, make sure that you qualify for HARP 2.0.

 

Photo: flickr creative commons by Pablo Manriquez

 

 

Melissa Zavala 
BROKER/REALTOR® ● DRE #01324959

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Comments (4)

Paul Campbell Realtor Lexington
Rector Hayden, Lexington, Ky - Lexington, KY
Kentucky Homes for Sale

Gene,

 

This is great information on HARP.  Would you please think about giving people the opportunity to "reblog" your post.  There is a lot here that I would rather not have to rewrite. 

Oct 26, 2011 10:42 AM
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Hi Gene. I guess that Paul didn't see that this was a reblog. Thanks for reblogging!

Oct 26, 2011 05:11 PM
Goran Utvic
Goran Utvic Real Estate Broker/Construction Consultant - Chicago, IL
Chicago 2 Flat Specialist

Great reblog...good explanation for the HARP program. It's a great program, unfortunately not many homeowners qualify.

Oct 29, 2011 06:48 AM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

HARP is a good PR stunt until proven it doesn't work.

Oct 30, 2011 09:58 AM