Upside Down but Current on Your Mortgage?
The Obama administration introduced HARP in 2009 to assist struggling homeowners with high payments and lowering home values. The Home Affordable Refinance Program 2.0 is only available to homeowners whose mortgages are backed by Fannie Mae or Freddie Mac. Another caveat is that the applicant for HARP must be current on their mortgage, if you are behind you will not be eligible. Also, you must have a conforming conventional or interest only loan, alternate loan types are not currently able to be refinanced through HARP.
In late 2011, HARP coverage was expanded into what is currently known as HARP 2.0. The expanded rule set eased restrictions on loan-to-value ratios and eliminated certain fees which prevented many homeowners from using the Home Affordable Refinance Program. In spring of 2013, the Federal Housing Finance Agency announced that it directed Fannie Mae and Freddie Mac to extend the program until December 31, 2015.
In January of 2012, the HARP 3.0 program was conceptually introduced in President Barack Obama’s State of the Union address. Sometimes referred to as “#MyRefi” this potential expansion and update of HARP may allow those with alternate loan types to refinance and expand the pool of available homeowners. Privately backed loans may be covered if the Obama administration can gain sufficient political clout to pass legislation. In early 2013, two bills were introduced called the Responsible Homeowner Refinancing Act of 2013, or S. 249 in the Senate and H.R. 736 in the House of Representatives. These are promising candidates for potential expansion of HARP into version 3.0.
Unfortunately, due to the difficulty of refinancing and the majority of our customers’ inability to stay current on their mortgages we do not offer HARP assistance at this time. Upside Down CA is dedicated to assisting homeowners and if you want to stay in your home, a loan modification may be a better alternative. Please call us at 916.442.6400 to discuss your home mortgage needs.