The Home Affordable Refinance Program or "HARP" was established through and functions much like the HAMP program detailed previously. The HARP program was created to allow homeowners who are current on their mortgages but who have not been able to takes advantage of today's lower interest rates because their homes have decreased in value and they are subsequently "upside down" or "under water" with regard to their home.
In order to be eligible to refinance under HARP a homeowner must be:
-The owner-occupant of a one-to-four unit home;
-The loan on the property is owned or guaranteed by Fannie Mae or Freddie Mac;
-You must be current on your mortgage payments at the time of your application for HARP. To be current a homeowner must not have been more than 30 days late on your mortgage payment in the last 12 months; or if a homeowner has had the loan for less than 12 months, they have never missed a payment;
-The amount of the first lien mortgage does not exceed 125% of the current market value of the property;
-The homeowner must have a reasonable ability to pay the new mortgage payments;
-The refinance improves the long-term affordability or stability of the loan;
The objective of a refinance under HARP is to get homeowners into more stable and more affordable loans through getting them into a new mortgage with better terms. A HARP refinance will not lower your monthly mortgage payments by reducing the amount of principle you owe on your mortgage; it lowers your monthly mortgage payments by replacing your mortgage interest rate with one of today's current market rates.
Given the significant drop in home values over the last several years most people may not qualify due to the excessive loan to value. In order to find out if you qualify for the HARP program or if the HARP program will be beneficial to you contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Defense Lawyer today to review your circumstances.
