As a result of the subprime mortgage crisis, many homeowners find themselves in a difficult position when it comes to refinancing their home loan. As property values on most homes decreased following the 2006 peak, many homeowners found themselves upside down or underwater on their mortgages. In layman’s term, many people found themselves owing more on their mortgage than their home was worth.
The Home Affordable Refinance Program was created by the Federal Government to help underwater or near underwater homeowners refinance their homes. This program is designed to benefit homeowners who are current on their mortgage payment but cannot refinance as a result of the mortgage crisis. HARP is scheduled to expire on December 31, 2016 and is not guaranteed to fit all cases, but it is one of several options currently available and worth looking into.
Am I Eligible for the Home Affordable Refinance Program?
According to harp.gov, 13,139 homeowners in New Jersey alone are eligible for refinancing through HARP. In order to be eligible for mortgage refinancing through the Home Affordable Refinance Program, you must meet certain eligibility requirements.
The basics of the program require that:
- Your loan is owned by Freddie Mac or Fannie Mae
- You are current on your mortgage, with no 30-day+ late payments in the last six months and no more than one in the past 12 months
- Your current loan-to-value ratio is greater than 80%
- Your loan was originated on or before May 31, 2009
I Am More Than 30 Days Late on my Mortgage, Now What?
If you are more than 30 days late on your mortgage payment, or fail to meet any of the other eligibility requirements of HARP – you may be ineligible for the program. If this is the case, do not despair. You may be eligible for relief through the Home Affordable Modification Program (HAMP).
HARP and HAMP are just two of the loan modification options available today and may or may not be the best fit for your unique situation. The best course of action is to speak to an experienced loan modification attorney and go over your possibilities.
Contact Ira Metrick to discuss loan modification today.
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