Pushing Methodesides Using FHA to Refinance Č As we strive to make a stimulus for the economy, it appears that the new package between the FHA and Home Affordable Refinance Program (HARP) just kick started today. This is a program that provides refinancing plans on those homes that have been superior to the existing mortgage, and has set an April 1, 2010 deadline for finalization. This was in response to the ongoing home foreclosure crisis. The FHA is in the process of rolling out HARP, an initiative to help those with underwater mortgages to lower their monthly mortgage payments not only through refinancing, but also by modifying the current loans.
Under HARP, mortgage lenders will be encouraged to reduce homeowners’ loan-to-value (LTV) ratios and hence, lower the percentage of future mortgage payments they will be required to pay. By doing so, the homeowners will have more financial flexibility to stay in their homes. It can enable them by paying off their current mortgage. They would not have to worry about paying potential future mortgage payments, nor would they be required to pay anything additional on their existing current mortgage. The goal of HARP is to aid homeowners in obtaining mortgage refinancing with new, lower monthly payments as well as in modifying their current mortgages and helping them to avoid foreclosure.
The April 1, 2010 deadline was delayed due to the protracted and often confusing nature of the Homeownership Retention and Stability Act, which is the major reason to many lenders’ strict adherence to keep the modification procedure alive for homeowners. Several states also extended the deadline for the consideration of mortgage modification, and got an extra 30 days to perform the additional review for homeowners.
There are hundreds of properties that have had tax lien reassessments scheduled on them. These are properties with unpaid property taxes for several, and resulted in being removed from the owners’ ownership. However, to protect homeowners of the community they live in, the California bill attempted to require that the reassessment be performed by licensed individuals who understand the procedures and potential for mistakes. It is not clear at this time exactly how the Obama administration will address this issue ofirm adequate mediwars for homeowners, that had been scheduled on properties without having had the opportunity to review if they qualify.
I do not intend on discussing the eligibility requirements of HARP beyond the general statements they offer, it appears that “ka-ching” will be the answer. Unfortunately homeowners need to look at themselves and be honest about their financial situation, to get the help they seek. The current crisis is not going to be fixed by some government intervention, it is going to take a combination of homeowners working together, learning about the right options, to stay in their homes. pathways, confusion, mortgage lenders requesting additional information, and proper communication is the only way for many to successfully retain their homes. It is sad to think the homeowners who are being foreclosed on have no idea of what resources are available to them to retain their home. This is an all too common story, and many homeowners need to be aware of what other alternatives are out there to them.
The worst thing any homeowner can do is nothing. Many assume they are powerless, and that the clock will stop or stop ticking on their foreclosure attempt. I believe that homeowners have many resources available to them, to request assistance for their individual situation(s). Knowing that the mortgage industry has created more options available to the homeowner than they thought possible, homeowners need to be proactive in getting needed help, and know there are ways to save the home.
Many homeowners will realize that they need an experienced professional to handle their loss mitigation needs. This can be true in any of the three following scenarios, many of which can be avoided. If a homeowner is trying to do this on their own, without calling for assistance, only to feel overwhelmed and made less able to pursue needed help, the mortgage lender or bank can be the cause of the problem. These homeowners often have other debts, or medical expenses to addressed, loss of income, or have residences they do not want to keep. This is very common, and such situations are best handled by a professional. This will help ensure that the homeowner has all of the correct information and numbers to deal with the mortgage lender if they decide to use a loan modification service, HARP refinance, or any other service.
Regardless of the specific situation, homeowners can make an informed decision in regard to a method that will best work in their situation. Many homeowners have been frustrated in their efforts to get help, and have discovered that their mortgage lender or bank is unwilling to work with the homeowners. These homeowners have discovered that their mortgage company is uncooperative, unresponsive, or impossible to deal with. Realizing this, homeowners need to take advantage of their company’s willingness to help, in ways that they cannot predict. Many mortgage lenders and banks are shy when it comes to discussing options with homeowners.
