Revised Mortgage Plan Designed to Help Struggling Borrowers

October 29, 2011 by  

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By email this week, I received an overview of the recent changes to the Home Affordable Refinance Program (HARP). I have blended in with it some bullet points of my own:

  • The changes are effective December 1, 2011
  • The new rules targets homeowners who owe more than their homes are currently worth
  • Mortgage must be guaranteed by Government lenders, Fannie Mae or Freddie Mac
  • Mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009
  • Payments must be current during the prior six months; no more than one late payment in the prior year
  • Homeowners can now refinance no matter how much they owe (eliminates the 125% rule that existed)
  • The changes eliminate appraisals and many underwriting requirements (in many cases)
  • The new rules include/mandate waivers of many expensive upfront fees

As you can tell, there is some fine print in this program. As a great starting point, call us at (949) 240-5892 to help you determine the market value of your Dana Point home.

Then call our friend, Mike Harper, at Alpine Mortgage, 949-769-7588, who has generously offered to help, to find out how these changes to the HARP program may help your ability to refinance your particular home and take full advantage of lower interest rates.

This is a PDF document on the Federal website that outlines the new rules in greater detail.

Filed under: Inside Real Estate

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