Like the HAMP program, HARP began in 2009 to help bolster failing homeowners as the housing market collapsed. In late 2011, the HARP 2.0 refinance was implemented to reach more struggling debtors. It is designed to help families who cannot refinance because the mortgage on their property is worth more than the property itself. They are known as “underwater” homeowners. HARP 2.0 brings a mortgage issued before 2009 down to a reasonable level, meaning its holder is no longer forced to throw away hundreds of dollars every month on inflated payments.
To qualify, borrowers must have a high loan-to-value ratio and have met payments for the past 12 months. Not every mortgage provider is part of this program, and the loan must be insured by Fannie Mae or Freddie Mac. Families may need to visit several providers before finding an institution suitedto them. Common Sense Mortgage Group, Inc mortagage brokers are familiar with manylenders in the area and may be able to shorten the search considerably.The interest rates on these loans are typically higher than those of other programs to pay for theadditional cost to lenders, but they are still far preferable to the payments seen on underwatermortgages. If you are unhappy with your situation and believes it applies to a HARP 2.0 refinance, speakto both a lawyer and your bank for further details.