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HARP Refinance Gets Two Year Extension

FHFA Gives Reprieve to Those Who Can Benefit from HARP

FHFA Gives Reprieve to Those Who Can Benefit from HARP

Orange County, CA – There’s fantastic news for many property owners out there with underwater homes. The Federal Housing Finance Agency has made an announcement regarding the HARP program which indicates that the refinance program is going to be rolled out for a further two years, up until 2015. The refinance package was meant to expire by the end of the year, but we can now look to the back end of 2015 for the end of this helpful policy. The FHFA has instructed Fannie Mae and Freddie Mac to offer the HARP program for another two years.

We first saw HARP around four years ago, and in that time around 2 million homeowners have benefitted from the program. Although this sounds like an incredibly high figure, the initial expectation from the Obama administration was for 2 million refi’s to take place within just 16 months. So it’s taken longer than expected for that amount of people to go through the program.

We can surmise that the administration feels that the program has not reached those who can benefit from the program in terms of refinancing. So they announced that there will be a nationwide campaign organized which will be designed to bring awareness to the program.

Of course, there are people out there who won’t qualify for HARP. First off, you need an existing loan owned by Freddie Mac or Fannie Mae. Second, the mortgage itself must have been purchased on or after June 1, 2009.  Next, you have to make sure that you haven’t missed a mortgage payment within the last 6 months. On top of this you cannot have had more than one late payment within the last twelve months. Specifically, if you have been overdue by thirty days or more on more than one occasion within the last twelve months you are no longer eligible. Finally, if you have already refinanced through HARP, you can’t do it again. If you can meet these requirements, you have every chance of being accepted.

There have been complaints from some quarters that a program has not been put forth to benefit an even wider proportion of the population. That being said, there are plenty of people out there who can benefit.You now have the opportunity to take advantage of the HARP program at any time between today and the end of 2015. There’s nothing like striking while the iron’s hot! Talk to us today about your situation, and we can help you to decide whether or not you can benefit from looking into the HARP program. 

Scott Storace

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