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What Can We Expect From HARP 3.0?

Hope With HARP 3.0?

Hope With HARP 3.0?

Orange County, CA – There’s no doubt that HARP 2.0 has been a great tonic for much of the American public. In fact HARP 1.0 and HARP 2.0 have helped over 14 million people reduce their mortgage payments despite being under water. However, there are many others who don’t fit in the Harp 2.0 box. Enter HARP 3.0. Senate Bill 3085, Responsible Homeowners Refinancing Act of 2012 is the bill that is trying to usher it in. There are many ideas of what HARP 3.0 should be. What it will be and when are yet to be determined.

For those that are awaiting the next refinance program, HARP 3.0 is still in limbo. For a long time now there has been speculation as to when HARP 3.0 will be approved in Washington. We’re still not sure exactly when that will be but efforts to move it along continue. The Obama administration has promoted the passage of a HARP 3.0 type of bill. What we can say though, is what it’s likely to do, and who it’s likely to help.

The main idea of HARP 3.0 is to provide refinance opportunities for people who do not have Fannie Mae or Freddie Mac guaranteed loans. During the housing boom years between 2001 and 2007 a large percentage of residential home loans were not guaranteed by Fannie Mae or Freddie Mac. They were sold to non GSE institutions. Therefore, there are millions of homeowners who do not meet today’s HARP guidelines. But relief for these borrowers would be more than welcome. Believe it or not, many of these homeowners have rates between 7-10%.

We’re also expecting HARP 3.0 to help Alt-A borrowers who have managed to improve FICO scores that would once have prohibited them from finding help. We also believe that it will offer assistance to people who are self employed. Many self-employed homeowners used stated income loans for their mortgage but are now in a position to document their earnings.

In the recent past there were thousands of borrowers who opted for a sub-prime mortgage simply because it was their only option. It is thought that HARP 3.0 is also going to help people in this position. Those borrowers in high-cost areas, such as Orange County, CA, will likely be included in the HARP 3.0 group as well. These are high-balance loans between $417,001 – $625,500.

It’s clear that more questions than answers exist for HARP 3.0. For this very reason, if you are hanging on for an opportunity to refinance, then please get in touch and we’ll see what we can do with your situation. We’re here to advise and help, no matter what your situation at present.

Scott Storace

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