Pismo Beach, CA – What is HARP 2.0? In fact, what is HARP? HARP stands for Home Affordable Refinance Program and it is a program that has been in place for the last couple years allowing homeowners to refinance their homes with participating lenders when they owed up to 125% of the current value of their home. However, there were a lot of requirements and the amount of people who were able to participate in the program was pretty meager. So new changes were announced last month that will be effective December 1, 2011 that should help more homeowners to take advantage of the program and today’s low interest rates. The program requires homeowners to have taken out their loans prior to May 31, 2009 and they must be backed by Fannie Mae or Freddie Mac. We can look up your loan to see if it is backed by Fannie Mae or Freddie Mac since you likely won’t know as you make your payment to a lender who services the loan.
Here are the key changes:
- Borrowers will be able to refinance no matter how underwater they are. Borrowers have to have made their last 6 payments and not missed more than 1 payment in the past year. They also must have a job or another source of reliable income.
- Appraisals are not required if the lender can obtain a reliable automated valuation.
- Eliminates fees for borrowers who refinance into a 15-year loan and lowers fees for others.
- Extends the end date for HARP to December 31, 2013.
If you would like more information, feel free to contact us.
Spencer & Margaret are Realtors and owners of Ocean Breeze Real Estate and are a Certified Distressed Property Expert (CDPE) team.
Phone: 805-709-7646 & 805-709-8535. Email: OceanBreezeRE@gmail.com.
View our homes for sale at www.OceanBreezeRealEstate.com.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
Spencer & Margaret Morris specialize in short sales in Pismo Beach California and all of Five Cities, Santa Maria and the Central Coast of California.
