Harp 2.0 Basics
If you own a home and owe more on your mortgage and your property is worth, you probably aren’t really happy with your mortgage terms right now. Remember back when the property values were high, but so were the interest rates? If you had a great job with security, then getting a mortgage was a no-brainer, right? Banks were lending money left, right, North, South, East and West.
To banks a new mortgage was a low risk with good collateral. Then the economy fell apart and things went sour quick. So exactly what happened? Well the housing market and property values tanked all of the sudden.Your mortgage was still high though and somehow, you now owe the bank more than what you can sell your house.
Then you heard about interest rates dropping and you tried to refinance to get that astronomical rate down to something more manageable. However, the bank declined, because you owe more than they could get for the house if you were to default on the loan. What a web of confusion!
Well you aren’t the only ones in that situation, there are hundreds of thousands of homeowners in the same boat. Homes were going into foreclosure faster than you can fall over Niagara Falls in a tube. So the Federal government had to step in to stop the spiraling out of control situation. Enter the HARP program and HARP 2.0
HARP 2.0 in Action
The main program they released was HARP and then subsequently HARP 2.0, The Home Affordable Refinance Program. The purpose of this program was allow those homeowners to refinance at the lower rate, if they have been on time with their mortgage payments. At first, under the original HARP, you couldn’t be more than 80% upside down. With HARP 2.0 though, they loosened up that requirement and you can be as much as 125% upside down on your mortgage.
HARP 2.0 Requirements
To get in the HARP 2.0, you still have certain requirements to meet, such as your mortgage must be a Fannie Mae or Freddie Mac insured mortgage. You have to have your mortgage in place by Mkay 31, 2009 and you can’t be late on payments the last 6 months. To see a full list of requirements, CLICK HERE
So some of us may still have some issues there, but, in the wide picture of everything, the Federal government did come to our rescue and made the banks and lenders an offer to help them, if they helped us. So all is not great, but all is not lost either.