The Home Affordable Refinance Program (HARP) has aided more than three million homeowners. This is seen as one of the Obama administration’s greatest victories and has been a huge boon for the American people to allow them to keep their homes. While it has helped a large segment of homeowners, it is in danger, which is why there has been a grassroots campaign to ensure that HARP 3.0 is developed and enacted.
HARP Deadline Looming
The FHFA extended the deadline for HARP to December 31, 2015, but it needs to be an option for an even longer period of time to allow the borrowers who owe more than their home is worth are able to refinance. FHFA Director, Mel Watt, said, “We are continuing our efforts to make sure that those who can take advantage of this program have the information they need to do so.” Their efforts are to put pressure on the Administration to ensure that HARP 3.0 is not put into the background.
Being able to refinance their mortgage at the low interest rates that are available now is essential to the financial future of these families. If HARP expires, then it could lead to more foreclosures in the future. HARP eliminates the need for a new property appraisal, as long as Freddie Mac or Fannie Mae can provide a reliable automated valuation model estimate. This makes all the difference for those homeowners who would not be able to refinance if this was not the case.
The grassroots campaign is not only trying to push HARP 3.0. They are also trying to ensure that more eligible homeowners learn about the program to be able to take advantage of it. From a new website at www.HARP.gov to public service announcements, targeted markets that saw a huge decrease in home values are the focus. These markets are more than we even realize, so the hope is that giving the information to them will lead them to choose this program to refinance their home and right their financial situation.
HARP Offers One Of Few Solutions For Underwater Loans
HARP is one of the few options for homeowners who own more than 125 percent of the value of their home. Otherwise, they have to pay their mortgage payments, or fall behind, which will lead to foreclosure. Refinancing can give them a new start and new hope in the economy.
What can you do? You can sign the petition to remind Obama of the need to continue HARP 3.0 by placing a countdown counter in the White House Entrance Hall. This petition needs 100,000 signatures before the government will even look at it or respond, and while people really don’t think that the clock will be installed, it will remind Obama of his promise during his 2012 State of the Union Address. It is only open until February 27, 2014, which is why it is essential to get the information out there. As members of the housing market community, we need to make sure that HARP 3.0 comes to pass.