HARP Program Has Been Revised

10.01.2012 | Author: nataliebrown86 | Posted in Mortgage
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HAMP and HARP are the two plans that are especially made for the american homeowners; anyone who is near to foreclosure can avail this plan and save their home. But to get the approval, one needs to meet its guidelines. President Obama has designed making home affordable plan for facing homeowners to help them in saving their home against foreclosure. By availing HARP program homeowners can lower down their monthly mortgage payments and stay permanently in their homes.

Americans are finding hard to make their monthly mortgages payment on time. Thus this new making home affordable plan would help the homeowners in lowering down their monthly mortgage payments and thus save their home from foreclosure. Obama making home affordable plan helps the borrower in finding mortgage relief. This plan has two units, the home affordable modification program and the home affordable refinance program. Borrowers can avail them depending on their needs.

The home affordable modification program is created to assist homeowners who are financially facing foreclosure. Many homeowners are getting approved by the lenders and thus they are successfully able to save their home. But to get the approval, one needs to meet its guidelines, they are given below:

Home Affordable Modification (MHA) Guidelines:

  1. The property should be the primary residence of the borrower
  2. The mortgage should have been originated on or before January 1st 2009.
  3. The unpaid balance on the loan should not be more than $729,750 for a single unit property.
  4. Interest rate should be lower as 2%
  5. The borrower can extend the loan term to 40 years if needed
  6. Borrower should be able to prove his financial hardship status.

Any homeowner who meets the above guidelines can surely modify the loan through HAMP. Lenders are paid incentives to approve the borrowers and thus they are encouraged to participate for the program. Thus many lenders are now helping people in the approval of the plan. The HAMP plan is best plan for the worried homeowners that provide them relief and the financial hardship they face. All the borrowers who are not able to meet their monthly mortgage payments should learn more about this plan before availing them.

Home Affordable Refinance Program (HARP) Eligibility:

  1. The HARP plan is especially for those homeowners who have mortgages backed by Fannie Mae or Freddie Mac
  2. The mortgage balance should not be more than 125% of the present home value
  3. Homeowner should not delay his mortgage payments more than 30 days for the past 1 year
  4. Homeowner should have enough funds to pay the monthly mortgage payment on time.

To get low home affordable refinance program rates, homeowners should meet all the above guidelines. He would get quick approval if he meets all the conditions. Thus he can surely save his home from foreclosure.

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