CR Reports

The Obama Administration throws a badly-needed life preserver to “underwater” mortgage debtors, through HARP, (or Home Affordable Refinance Program). As a reward for continuing to pay their “upside-down” mortgage payments, HARP is being extended through December 31, 2013. Mortgages bought by Fannie Mae or Freddie Mac are eligible for modification, even though current appraisals are under what’s owed. As long as you’re current on your obligations, you’re free to work with any underwriters who offer the program, which relieves you from negotiating with current lien-holders, who have no motivation to orchestrate a new arrangement.

HARP is specifically-designated for those homeowners who can’t refinance, due to lack of equity and yet, their interest rates are locked into high-rated parameters, because of their timing. Shortening the length of their mortgages or modifications with lower payments can help to cure this precarious position. A pre-requisite for participation includes continual and timely payment of your mortgage, besides the government-backing offered thru “Freddie” or “Fannie”.

Would you believe that out of 10 eligible homeowners, 9 fail to take advantage of HARP, even though the program is a life-changing lifeline to those “underwater” on their home?

To qualify, borrowers mortgages must be current for the previous six months, with no more than one late payment, in the past year. Loans must have been purchased by Freddie Mac or Fannie Mae after May 31 of 2009, with loan-to-value ratios of at least 80%. There is no longer a 125% LTV cap on fixed mortgages, but there is a 105% LTV cap on adjustable rate mortgages. You may not need a new appraisal, in order to qualify.

HARP isn’t a solution to those that have recently lost employment or might be ready to start paying late on their loan. When you modify your mortgage under the plan, it must be on your own home of 1 to 4 units and you can’t wind up paying a higher mortgage payment, as a result. These are just a few of the stipulations with the plan, but it’s estimated there are many homeowners that fit the criteria.

The first step is to find out whether your mortgage qualifies as being guaranteed or owned by Freddie Mac or Fannie Mae. Both government-backed lenders have initiated free loan lookup tools, to help you determine whether your mortgage loan qualifies for HARP. Refinancing your mortgage under the Home Affordable Refinance Program requires you to use a mortgage lender or processor involved with the program.

Not all government-guaranteed loans are eligible for HARP. It’s essential to realize it’s a modification scheme designed for those who bought at the height of higher home prices and interest charges, through specific “conventional” loan options.

Don’t forget you might need to pay some fees to get your residence appraised, besides typical fees for applying and underwriter review. More than 1 million citizens can be relieved of high-interest borrowings, which are “upside-down” in values, but HARP isn’t for everybody. If you qualify, there’s additional information to consider, before assuming this is the best option.

Lance Mohr is a specialist in the Tampa real estate market. If you have any questions or are looking for an hard working Realtor give me a call. For details on Tampa new homes or Tampa communities please visit our website at www.Tampa2Enjoy.com.