Harp 2 Refinance

November 30, 2011


A new revised Home Affordable Refinance Plan was announced by the government on October 24, 2011. Last week, Fannie Mae and Freddie Mac issued guidance that filled in some of the details.


Lenders can begin taking applications tomorrow, December 1, 2011, it will probably take several months before these programs function and new refinanced loans are made.
To qualify for the program, your existing loan must have been sold to Fannie or Freddie on or before May 31, 2009. The loan balance must be more than 80 percent of the home's current market value. The loan must be current the past six months, with no more than one late payment in the past twelve months. If you had previously refinanced through HARP, you are ineligible.


Unfortunately, in our present world of upside down homeowners, many borrowers were told by their lenders that until they missed a payment or two, they were not eligible for a loan modification. This is the story that we are told again and again by folks who were keeping up their payments but who applied for loan modifications.


Perhaps the new HARP 2 will help some, but no one can be certain that it will function efficiently enough to allow true loan modifications.