Home Affordable Refinance Program: HARP Refinace
HARP Refinance Explained
The real estate market has been hotter than hot starting in the 1990’s all the way until 2007. Then the real estate, credit, banking, and financial crash of 2008 struck hard. Very HARD where millions of homeowners who had equity in their homes have seen it evaporate before their eyes. Having the equity wiped out was not the major issue. Homeowners were left stranded with mortgage loan balances higher than the value of their homes. This was labeled as having your home underwater. Millions of homeowners bailed where they just turned in their keys in to their mortgage lenders and rented apartment and homes while millions of other folks were forced into bankruptcy and foreclosure due to unemployment, under-employment, or business losses. Small businesses that were in business for generations have gone out of business. Industries such as the real estate, mortgage, and construction industry were at a standstill. Half of the mortgage brokerage companies have gone out of business, filed bankruptcy, or closed their doors. Sectors of the mortgage business such as the sub prime mortgage markets and no doc mortgage lending were completely regulated. The whole mortgage industry went through an overhaul and lost half of its workforce and new regulations were implemented and government agencies like the CFPB were created.
Creation Of HARP
Bankruptcy and foreclosure rates have sky rocketed and set historical highs. For homeowners who had mortgage loan balances higher than the value of their homes and who wanted to stick the real estate collapse out, the government created the Home Affordable Refinance Program, also known as HARP Refinance.
If your conventional conforming mortgage loan is underwater, the balance is higher than the value of your home, you may qualify to do a refinance mortgage loan without having any equity and/or having your mortgage loan balance higher than the market value of your home and without having to pay private mortgage insurance through the Home Affordable Refinance Mortgage ( HARP ) loan program.
Basics Of HARP Refinance
The Home Affordable Refinance Program, HARP, was launched in April 2009 to assist and reward homeowners whose mortgage balance was higher than the market value of their homes and to avoid the foreclosure crisis. In order to be eligible for HARP loan, the mortgage loan needs to be owned and backed by either Fannie Mae and/or Freddie Mac. Fannie Mae and/or Freddie Mac needs to have owned and backed the mortgage loan no later than May 31, 2009.
More On The Home Affordable Refinance Program
The Home Affordable Refinance Program do not require appraisals since the home mortgage loan balance is higher than the actual value of your home. The HARP Refinance program has been extended a few times and is set to expire on December 31, 2015. Homeowners who did not take advantage of the HARP loan program should contact us to see if they qualify and see the type of savings that a HARP Refinance loan can offer.
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