Great News for Underwater Homeowners

Changes to HARP Program Announced

You may have heard that President Obama  plans to open up refinancing to more homeowners who are underwater. If you are  wondering what this means…and if you can benefit…here are some facts to  consider.

First, it’s important to realize that the president’s proposal is not a new  program, but a revision to the current Home Affordable Refinance Program (HARP).  However there is a big change:  Now  homeowners can refinance no matter how underwater they are! Before homeowners  could only refinance if they were 25% or less underwater, and even then many  banks only let people who were 5% or less underwater refinance.

Also, with the revision it’s possible that an appraisal won’t have to be  performed, which is great news as this will save time and money. But this is only  the case if Fannie Mae or Freddie Mac can electronically estimate the value through  their valuation models.

Keep  in mind that these updates to HARP apply only to people whose mortgage is  currently secured by Fannie Mae or Freddie Mac…and whose loan was securitized  by Fannie Mae or Freddie Mac prior to May 31, 2009. So the chances are  that people who have refinanced since May 2009 will not qualify to refinance  under the HARP revision.

As of now, the revisions to HARP have been proposed by President Obama and the Federal  Housing Finance Agency (FHFA), which regulates Fannie Mae and Freddie Mac.  This directive has been given to Fannie Mae  and Freddie Mac and they now have until November 15, 2011 to give guidance and  details regarding how these changes will be run.

To read more details, you can visit the FHFA Web site. And if you have any questions at all about what  these changes mean or how they could impact you, call or email me anytime. I’m  always happy to help.

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About Best Florida Mortgage Company! Jim Marcinkowski

Mission Statement Our mission is to be the home financing partner that you trust to serve your family, friends and community. Through our family of dedicated mortgage professionals, our commitment is to deliver an exceptional experience. Our unwavering dedication to integrity, honesty and ethics is the foundation of all of our relationships. NMLS 182565, NMLS 1016
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