Yup, I said it, HARP 3.0 is dead. It was never more than a rumor but HARP 3.0 gave hope to millions of non-government insured, underwater homeowners. Don’t get me wrong, HARP 2.0 is the best thing to happen to homeownership since the VA mortgage loan, but it left millions of deserving people out in the cold. When President Obama removed the 125% loan-to-value cap the Home Affordable Refinance Program lived up to its potential…almost. Here’s the latest HARP 3.0 news and something you can do today to help bring HARP 3.0 back from the brink.
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HARP 3.0 Was Supposed To Happen But…
Turn on the TV and the news is filled with fallout from the fiscal cliff deal and gun control. Talk of HARP 2.0 is a distant memory from 2012. The program, which helps underwater homeowners refinance home loans that were until recently too toxic for lenders, is the last thing on anyone’s mind in Washington.
Who is the Home Affordable Refinance Program for?
As I mentioned, the biggest letdown of HARP 2.0 was that it did nothing to remove the requirement that your home loan be backed by Fannie Mae or Freddie Mac prior June 1st, 2009. If your home loan isn’t backed by the government and is privately held by someone like Wells Fargo or Bank of America you’re out of luck.
If President Obama and Congress remove the government insured mortgage requirement with HARP 3.0 it would help millions of deserving, financially responsible homeowners.
Here’s a list of groups of homeowners that stand to benefit from HARP 3.0:
- Self-employed Homeowners
- Homeowners With Bad Credit Mortgage Loans
- Jumbo Mortgage Holders
- Stated-Income Mortgage Loans
If you’re self-employed and can verify your income with tax returns and bank statements but can’t qualify for refinancing because of your loan-to-value ratio HARP 3.0 could help you.
If you’re underwater in a sub-prime mortgage the deck has really been stacked against you. Changes to this government refinance program offer a glimmer of hope but have yet to materialize.
Much like underwater sub-prime mortgage holders, there’s not much more toxic to lenders than an underwater jumbo mortgage loan.
If you purchased your home with a stated-income home loan and cannot qualify for refinancing based on verified income HARP 3.0 could help.
There are millions of underwater homeowners in the U.S. left out in the cold with the original government refinance program and HARP 2.0 that stand to benefit from a newly revised Home Affordable Refinance Program.
Wait, I thought you said HARP 3.0 was dead?
Any proposal in Washington that isn’t getting lawmaker attention is dead, so to speak. With gun control on the forefront of the Whitehouse’s agenda there’s little hope for HARP 3.0 coming anytime soon. Also, HARP is set to expire at the end of this year unless extended by the President or Congress.
I realize this isn’t the news you were hoping for but there are things you can do to help yourself in the absence of a revised Home Affordable Refinance Program.
Keep calm and carry on…
What’s an underwater homeowner to do? First of all, keep making those mortgage payments on time.
In fact, make all of your payments on time including those credit cards. Spend some time reviewing your credit reports for errors. You can get free copies of all three of your credit files by visiting the government-mandated website AnnualCreditReport.com. If you find mistakes all three credit bureaus (Equifax, TransUnion and Experien) process online disputes. Dispute all inaccurate or outdated information you find in your credit reports.
Finally, maintain the highest possible credit score by keeping the balances on your credit cards below 30% of your limit. This is doubly important for any store charge accounts.
You can help resurrect HARP 3.0
There’s a petition circulating social media today calling for President Obama to formally extend the Home Affordable Refinance Program and allow reHARPING. This could go along way to getting HARP 3.0 back on the minds of lawmakers in Washington.
You can find the petition on the WhiteHouse.gov website under “We the People…” using this link:
Click Here For More Details…
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