These are designed to provide encouragement to banks to actually do something about homeowners who are in trouble. Prior to this the HARP program was not working because it was easier for the banks to foreclose.
Now there are extra reasons/ incentives and outlines for the banks to participate. As if helping a homeowner and keeping them out of foreclosure and a good credit worthy customer was not enough.
This is a little technical, good for my Real Estate Colleagues. Read About short sales and home loan modifications
Good Morning,
Here is the press release about the new expanded HARP refinance program listed on the FHFA website here is the direct link:http://www.fhfa.gov/webfiles/
The bottom of page one outlines the “new” details
1. The eliminating of certain risk-based fees (aka LLPA) for borrowers who refinance into a shorter-term (15 year mtgs didn’t have any)2. Removing the 125% Loan-to-value ceiling for fixed rate refinances only (second mtg must still subordinate)
3. Eliminating the need for a new appraisal where there is a reliable AVM (automated valuation model)
4. Extending the end date of HARP (housing affording refinance program) until 12/31/2013
5. Condos are allowed
Underwriting manuals will not be out until mid November so hopefully there will be a relaxation in the underwriting guidelines to help more borrowers refinance who have not been able to refinance.
Stay tuned….
Aaron Meyer
Mortgage Originator
NMLS# 594379
First Bank Financial Centre -NMLS# 410817
2001 West Beltline Hwy, Suite 110
Madison, WI 53713
608.834.5585 office
608.695.3608 cell
608.834.6464 fax
Why do we range price homes for sale?
RealEstateGuy has been a full time, full service Realtor since 1993. He is dedicated to helping people achieve their Real Estate Goals and dreams. In order to provide more specialized service, he created a team of hand picked specialists. Guy believes in constantly learning more, so regularly attends national seminars and trainings. Guy has been a top producer, leader in his office, a president of the Wisconsin chapter of CRS, and has spoken at the State Realtor Conventions.
