The Loan Modification Program - Six Months Later

The federal government's Making Home Affordable (MHA) program helps people facing foreclosures. It has two primary programs: the Home Affordable Refinance Program (HARP), designed to help homeowners who are current on their mortgage payments but owe more than their homes are worth, and the Home Affordable Modification Program (HAMP), designed to reduce monthly mortgage payments so homeowners can still keep their homes.

MHA started in March, and as of Sept. 1, 2009, the loan modification program has helped many Americans who are facing foreclosures. In fact, the U.S. Department of Housing and Urban Development, which runs the program, has set a goal of having 500,000 modifications under way by Nov. 1. On Oct. 1, the Treasury Department proudly announced that it has reached a total of 500,000 trial modifications-one month earlier than the initial target. Despite this success, however, many are still in danger of losing their homes.

According to the October oversight report released by the Congressional Oversight Panel, which is tasked to review the current state of the markets and regulatory system, foreclosure rates have now quadrupled. One in eight mortgages faces foreclosure or default. Experts estimate that before the housing crisis is over, Americans could be facing ten to twelve million foreclosures.

The report, titled, "An Assessment of Foreclosure Mitigation Efforts after Six Months," discusses the effectiveness of the program and the reasons many are still not able to lower their monthly mortgage payments. The panel expresses concern over the program's scope, scale, and permanence:

1. Scope
The program's scope is very limited. Not all kinds of borrowers can take advantage of it. For instance, the program can be very helpful to subprime borrowers who are paying a high interest rate. However, it is not designed to address foreclosures such as those caused by unemployment. Today's unemployment rate continues to rise, and it is now considered to be one of the major causes of foreclosures. The HARP program appears to be addressing the housing market as it existed six months ago instead of today.
2. Scale
In August, over 220,000 mortgages entered into foreclosure, but the government began preliminary modification on only 95,000 mortgages. Foreclosures continue to rise every day, and there is reason for concern whether the government can keep up. The number of foreclosures is greater than the number of loan modifications-a 2-1 ratio. The scale of the program seems not broad enough to address the current foreclosure crisis.

3. Permanence
The solutions offered under the loan modification program do not seem to help homeowners achieve long-term financial stability. The loan modification will lower the monthly payments of many borrowers, but after five years payments will rise. Even if a borrower's loan will be modified today, there is still a possibility that he will face the same mortgage problem in the future. Loan modifications also increase a borrower's negative equity (owing more on the house than it's worth), which is also said to be one of the causes of the increased rates in default. If the borrower still faces foreclosure despite the loan modification, then the loan modification program is only a delay and does not provide a permanent solution.

The rising unemployment, falling home prices, and impending mortgage rate resets will certainly affect the American homeowners. Hence, the government needs to review the scope, scale, and permanence of the modification program to ensure that a real solution is provided to homeowners.
To learn more about the HARP 2.0 options available to you, visit http://www.confirm-eligibility.com/

HARP Re-Finance Loan

HARP leads are new to the mortgage community so let's try to make sense of requirements for a HARP re-finance and show what data sets are working well to get those deals closed. First off let's define what HARP is, HARP stands for Home Affordable Refinance Program, It's also commonly referred to as a DU re-fi or DU Plus program. The terms may be different but they are describing the same program. So for our purposes here, DU and HARP will be interchangeable. This is part of Congress' effort to jump start the mortgage market and keep people in their homes. If you have been in the industry for any amount of time you probably already have your own ideas of just how effective this program will or won't be, but we'll focus on the requirements for getting those deals done.

The basic tenants of the HARP deals are as follows:Mortgage Trigger Leads

1. You will be working with the servicer to get these deals done. The original lender does not need to be the servicer for these deals. This presents some very unique opportunities for those of you who work directly for the lender. So if you work for Bank Of America, there is a gold mine in these deals with the right kind of data. If you are a broker, there is still a gold mine but he data you'll be using will be a bit different.
2. The first mortgage can be up to 105% LTV. No appraisal is required but the AVM will vary by servicer. Juniors can be subordinated to unlimited CLTV!
3. The type of loan you'll be transition people to is straight forward. A 30 year fixed will need to be put into another 30 year fixed. If you have an adjustable you can take them to a 30 year fixes or another adjustable. A 30 year fixed can't be transitioned over to an adjustable.
4. Borrow may not have any late reporting mortgages in the last 12 months.
5. There is not had credit score requirement but there will be rate adjustment for scores under 740
6. The loan must be agency loans, fannie or freddy
So let's talk about the data for getting these done.

If you are working for the Lender/Servicer, Bank of America, Wells, etc.
You have an advantage that is unique and you have the opportunity to provide real benefit to your borrow. Using a soft inquiry lead (which your employer already does at the wholesale level) you have the ability to screen via the soft inquiry and find your existing customers that eligible for a HARP refi. This is usually done with the borrow name and partial SSN which are provided with our leads. We are screening the credit report so the other requirements are read directly off the credit and ensure that your prospects meet the specific requirements for the HARP program. If you can imagine the scenario of calling Johnny Borrower with your internal customer information and our lead and letting them know that they qualify for a reduction in their interest rate without an appraisal then you already have half of the deal done. Please give us a call and let us go over this unique opportunity. If you are a broker;

As a broker, you will have the same opportunity to help your borrow and gets deals funded but the tact you will take will be different from the LO who is working for the lender. Since you don't have access to look up customers via an internal system your marketing will be done in a more traditional manner. Direct mail has proven to be a solid method for getting these borrows and the mail piece is simple.

They are already approved and since you'll be screening via the same soft inquiry process that the institutional lenders are using you'll have the same added advantage of knowing what's on the credit report before a single piece of mail is sent or a single phone call is made. Once the borrower's eligibility is verified you'll be pushing the re-finance through the servicer. Please call us to get more details about this unique opportunity. The deals are the middle ground between an FHA re-finance and a conventional deal. These require less effort than a convention and a better paycheck than a streamline.

To learn more about the HARP 2.0 options available to you, visit http://www.confirm-eligibility.com/

Why Do We Need HARP Loan?

HARP is short form for "Home Affordable Refinance Program" and was first designed for those people who owned homes that were serviced by loans from Fannie Mae and Freddie Mac. With this program homeowners were then able to refinance their homes that where slightly underwater that previously didn't have Mortgage Insurance. This could also be done with loans that were struggling or which had an outstanding balance that was much higher than the value of the house. When HARP first came about, it did not do well in some areas because incomes were being closely watched and loans were capped at a 125% value. This basically meant that you could not own more than 125% the value of the home.

At present, HARP 2.0 is being worked on and will be called HARP 2012 once it is released. It will be an improvement on the first HARP program and will give borrowers the flexibility to refinance at lower interest rates with minimal income documentation. There will also be zero limits for value which means that appraisals will totally be eliminated from the scene. Put simply if you are home owner with Fannie Mae or Freddie Mac owned home, and if you have not defaulted on your loan repayment for 6 months with the ideal being 1 delay in payment in a year, you will then be able to refinance to a level below the 4% range on a 30 year fixed. This can mean that you could do this with no appraisal and minimal documentation.

To find out if you fall in the Fannie Mae or Freddie Mac category, you can do so by going online and checking whom your loan belongs to. You will instantly know the answer online and if you don't, you can easily ask your loan provider for the information. The loan you get will be able to refinance your first mortgage alone without touching the 2nd one if you have it at all. Besides taking on loans that are slightly underwater, you can take advantage of this program if you have a higher interest rate than what is currently in the market. You can also make use of HARP if you have an ARM or an adjustable rate mortgage that stands to be reset soon enough. You can make use of this if your loan to value is over 80% and needs mortgage insurance.
The main aim of HARP is to bring down the amount you are paying right now and a maximum of $250 Cash is allowed back at closing.

To learn more about the HARP Loan options available to you, visit http://www.confirm-eligibility.com/

Making HARP Program Explained

Obama refinance plan has been primarily designed to make the financially grappling homeowners to pay their monthly mortgage payment successfully so that they may be able to avoid foreclosure. In case you are the home owner who is in the adjustable rate mortgage slab, not able to pay the monthly payments; home affordable refinance program (HARP) is for you. Millions of Americans as the result of financial crunch have not been consistent with their mortgage payments, and which is why federal government has come up with various programs, and HARP is one of them.

Most of the home improvement programs are quite effective in stopping the foreclosures and saving the home. Under the unique HARP program, mortgage lenders will refinance the existing home loan to a value equal to 138 percent of your home's actual value. By doing so, the mortgage lender will be getting fixed mortgage rate and there will be no fluctuations in the interest rates. Unlike the HAMP program, a homeowner who becomes eligible under the HARP, do not essentially have to occupy the property. It means that you can go for HARP even if your primary home is lying vacant. The program also has various other conditions which the homeowner can easily judge by reading through the program guidelines. If you don't understand then you can ask your mortgage lender as well.

The HARP program has become popular for many reasons and among the borrowers who have not been able to pay for the mortgage loan. The purpose of federal HARP program is to make the home affordable for the homeowner as he/she can easily repay the mortgage without any hassles. Most of the homes are on the brink of getting foreclosed, and in this context, HARP has brought hope for the homeowners. The ultimate purpose of HARP is to avoid foreclosure of the homes so that homeowners do not lose their home and they can stay peacefully in it.


The program is one of many programs which have been started by Obama administration to help the homeowners in the manner where they get off the mortgage loans quickly and easily. If you are one of those homeowners who have not been able to repay the mortgage loan, then HARP is the right option to start with. HARP program to stop foreclosure is a smart program to make financially stricken US homeowners go free of their mortgage loans.

To learn more about the HARP program options available to you, visit http://www.confirm-eligibility.com/

Harp Loan - Know About Mortgage Debt

Many people have faced mortgage debt and foreclosure in recent years. As the housing market crisis continues to challenge homeowners every day, more people are being forced into drastic measures to save their homes. Unfortunately, many people aren't able to secure a solution in time or, worse yet, simply don't know their rights when it comes to managing their mortgage debts.

Your Options

Choosing between mortgage debt solutions can be overwhelming. The best place to start is with a loan modification, in which you can negotiate changes to the terms of your existing loan that can significantly lower your monthly payment. Lenders can be stubborn with qualification standards for a loan modification, which may lead you to consider refinancing. This option may be able to lower your monthly payment, but be sure you can afford the out of pocket closing costs.

If you are unsure about your ability to maintain even a reduced monthly payment, consider requesting approval to enter a short sale. Selling the home in exchange for being absolved of your mortgage debt liability can protect your credit more so than allowing the home to enter foreclosure. Finally, a deed in lieu of foreclosure may be able to get you out from under your mortgage debt in exchange for signing over the deed to the lender. However, remember that this option is a last resort and should only be pursued if no other option is possible and foreclosure is imminent.

Your Rights

As a homeowner, you are afforded certain rights when it comes to dealing with lenders. Even in a non-judicial foreclosure state, lenders cannot simply foreclose on your home without following a few basic requirements. The trick to managing lenders is to know your rights and ensure they are following the rules.

First, lenders are required to provide you with written notification about an impending foreclosure. The amount of time allotted for these notifications varies by states, some as little as 30 days. However, your lender cannot initiate the foreclosure process of HARP loan without informing you in writing of your delinquency and their intent to foreclose.

Next, you have the right to request a mediation hearing with your lenders present. This hearing will allow you to sit down and discuss your loan options with your lender. To ensure you are getting the most from this hearing, consider hiring a foreclosure lawyer to represent you with such legal matters.

Last, remember that you have the right to negotiate a solution with your lender directly at any time. You may request options such as a loan modification, short sale or refinancing option in lieu of a foreclosure. If you are unable to secure a deal, consider one of several federal programs that are offered to assist homeowners. The HAMP and HARP are two programs developed by the government that can offer modifications or refinancing to homeowners that may not qualify under their lender's standards.

To learn more about the HARP loan options available to you, visit http://www.confirm-eligibility.com/

HARP 2.0 Refinance - Some Relief for Underwater Homeowners

The Revised HARP (Home Affordable Refinance Program) guidelines appear to be a god-send for homeowners who are under water on their mortgage.

If like many homeowners you have been responsible, paid your mortgage on time even though it is higher than market rate, all the while watching those around you buy and refinance at lower and lower rates. Well, good news if finally here. A program you can use to lower your interest rate has come along and you are ready to refinance. That is, the new HARP 2.0 Refinance program, which is intended for homeowners whose loans are owned by Fannie Mae or Freddie Mac, and who owe more than the property is worth, who are under water on their mortgage.

But as the program is set to roll out, it's funny. The question often then arises: "Should I refinance? How many years will it take to pay this mortgage down to what my home is worth now?" And at that point some homeowners consider the real option of doing a short sale.

Certainly there is nothing wrong with a short sale. Lots of people are selling their homes for less than it is currently worth, and the lender is playing along and taking the loss.

But, if you plan to be in the home long term, that is, for a number of years to come, then the HARP 2 refinance may be just the option that helps you keep the home, greatly increase cash flow on the property, and wait it out as your neighborhood increases in value again over the next few years.

Time is one your side, so long as you don't have to move. If you feel secure in your job, and kids are doing well in their schools and with their circle of friends, then you will do well over the long haul to stay in your home, and take advantage of this HARP Refinance and enjoy an increased household cash flow, while also enjoying your home. The home that you have made for your family, where your memories are and have been created. You can now feel very content in staying put in your home, with this new refinance option.

Oh, and here is another consideration about the HARP 2.0 Refinance as opposed to short selling your home. The Hassle Factor. Some people will tout the great real estate deals out there right now, and encourage you to sell your current home so as to be able to take advantage of the great deals out there.

Selling your home on a short sale is not easy. Generally it takes 4-10 months, and a lot of home showings and a lot of paperwork to your current lender. A refinance, on the other hand, and want to refinance with a HARP 2.0 refinance program, you will provide similar paperwork, and then wait 30-45 days to close your loan, depending on the volume of loans that your lender has at the time.

In closing, take a close look at the HARP 2.0 Refinance if you otherwise qualify - meaning your loan is owned by Fannie or Freddie. And, you can follow the link above to see who currently owns your loan. Hint: it is probably not the company you are currently sending your monthly payment to.

To learn more about the HARP loan options available to you, visit http://www.confirm-eligibility.com/

HARP Program - Federal Mortgage Assistance

The federal programs provide help to struggling home owners in two ways - by either refinancing the existing mortgage, or by modifying the existing home loan.

Refinancing the Home (HARP)

It is possible for you to qualify for the making home affordable refinance program option if:
• Your existing mortgage is owned by Freddie Mac or Fannie Mae
• The loan-to-value ratio of your first or primary mortgage does not exceed 125%
• Your mortgage payments are current and regular

The borrower can still qualify for this Obama's making home affordable refinance program option even if he or she is upside down on the mortgage, but has the required loan-to-value ratio. The HARP program is basically meant for home owners whose mortgages have depreciated in value in the recent times, and the collateral fails to provide enough financial guarantees for the existing mortgage.

Modifying the Loan (HAMP)

This home affordable modification program option is meant for borrowers who have fallen behind on their mortgage payments, or are not able to afford the monthly mortgage payments due to various reasons. If you are currently paying an ARM on your mortgage and the rate has increased, the modification makes it possible to avail a fixed rate of interest and do away with the ARM. Another advantage of the HAMP option is that it helps in restructuring your existing mortgage by extending the loan term, decreasing the net rate of interest, and even reducing the monthly mortgage installment amount. It is one of the best option to save your home if you are currently facing a foreclosure, or likely to face it in the near future. For availing your HAMP:

• The mortgage loan balance should be less than $729,750
• The monthly payment for your main or primary mortgage (in case you have availed a secondary mortgage or a home equity line of credit - HELOC) should be more than 31% compared to your gross monthly income
The main objective of availing a HAMP is to modify or restructure the terms and conditions linked with your current mortgage and make the monthly mortgage payments more affordable.

Eligibility for Home Affordable Modification Program

To become eligible for HAMP, the applicant:

• Should own and occupy the home
• Should have availed the current mortgage on or before January 1, 2009
• Should have less than $729,750 owed on the existing mortgage (for a single unit home)
• Have a monthly gross income more than 31% of the proposed modified loan's total monthly installments, including the property tax and insurance
• Has to provide a convincing financial hardship letter containing at least 3 critical factors explaining why it's difficult, if not impossible to make the monthly mortgage payments and remain current with the existing mortgage

If you want to modify your existing loan and avail the HAMP benefits, mortgage refinance companies can help you become eligible for it. An effective hardship letter and proper documentation can help you get a reduced interest rate - as low as 2%, and even extend your term up to a maximum of 40 years. Our attorneys can help you work out your home loan modification.

Deciding which Option to Avail

It is very important to decide which option is the best for you depending upon the current status of your mortgage. The refinance option gives an opportunity to completely overhaul your existing mortgage by paying off your home loan and availing a new "refinanced" loan with a reduced rate of interest and affordable monthly payments. The modification option provides the same benefits of reduced interest rates and affordable payments, however a new loan is not taken out and your existing home loan is restructured to make it affordable. It's recommended you provide your contact details by filling up online application form, so federal program expert can call you and provide free non-binding help and guidance to help you deal with your mortgage related issues and problems in an organized and effective way.

The intention of this article is to provide information for people who are facing foreclosure of house. If you are among millions homeowner, you should be aware of the government programs that will help you with your mortgage payments. Author suggests visiting Refinanceitt.com to know more about it.

To learn more about the HARP Loan options available to you, visit http://www.confirm-eligibility.com/

HARP Loans For Underwater Homeowners To Refinance Into Lower Mortgage Rates

For much of the past year, mortgage rates have been at or near record low points. Unfortunately, many homeowners have been unable to take advantage of these rates due to declining home equity. Many homes have lost significant amounts of value since the housing market peaked in 2006. As a result, many homeowners now owe more on their mortgage than their home is worth (this condition is known as being “underwater” or “upside-down” on one’s mortgage). Homeowners who lack equity in their homes are frequently unable to meet the loan-to-value (LTV) ratios required by lenders in order to refinance their mortgages. These borrowers may be missing out on thousands of dollars worth of savings.

In response to this situation, the government created the Home Affordable Refinance Program (HARP). HARP was designed to allow homeowners with little to no home equity to refinance into lower mortgage rates. HARP loans are available to borrowers with LTVs of as much as 125 percent, although the maximum LTV it varies by lender.

Some of the eligibility requirements for HARP are:
• The borrower’s mortgage must be owned by Fannie Mae or Freddie Mac
• The home must be the borrower’s primary residence
• The borrower must be current on their mortgage with no late payments in the last 12 month period
• The new loan must lower the borrower’s monthly payments
For a complete listing of the HARP eligibility requirements, check out the Making Home Affordable Webpage here.

And these are just the primary eligibility requirements. There are others. Therefore, it is imperative that homeowners seek the help of professionals who are well versed in the demanding and fairly complicated HARP Loan process.

As you can see, the history of HARP is still evolving and subject to future changes. For now, HARP is due to expire on December 31, 2013, but if housing market conditions continue to decline, then hopefully the Federal Housing Finance Agency (FHFA) will continue to adjust to the new circumstances. Presently, a nice feature of HARP is that homeowners can avoid paying for an appraisal if a reliable automated property valuation model, such as Zillow, is available for your particular area, subject to the mortgage servicer’s discretion of course.

The significant changes in HARP eligibility requirements announced by President in October 2011 have led mortgage industry insiders to dub it HARP 2.0, even as the history of HARP is little more than two and a half years old. The Mortgage Bankers Association has previously estimated that $900 billion in mortgages will be originated in 2012 but with HARP 2.0 fast becoming effective, this number will certainly rise. Unfortunately, HARP was not designed to help homeowners already in foreclosure proceedings or in danger of being foreclosed upon.

The HARP loan program has been extended through June 11, 2011.
To learn more about the mortgage options available to you, visit http://www.confirm-eligibility.com/