New Hope With Government HARP 2.0 Revisions
There is a feeling of new hope as the New HARP 2.0 Program Revisions details are being reviewed. Unlike the original HARP the new HARP 2.0 Program revisions includes new terms and requirements which will apply to thousands of families who are currently hopeless.
The reformatted HARP program has improvements for the borrowers and for the lenders, the borrowers underwater limit of 125% will probably be deleted, and all the underwater mortgages would be included, the lender are free from the buyback sanction which help many of them from participating with the old HARP program.
” Although details of HARP 2.0 have not been fully announced, some anticipated improvements are:
- In the 1st HARP, the underwater limit was 125%. In HARP 2.0, it appears there will be NO limit.
- Fees could be reduced – e.g. an automated appraisal may be allowed vs having to pay for a new report
- There will be no “buyback” requirement, where the originating lender would have the possibility of taking back this loan from FannieMae or FreddieMac and having to reimburse them, if the borrowers went into foreclosure.
The buyback requirement in the 1st HARP program caused many lenders not to want to participate, leaving those lenders who did participate with huge, overwhelming demand. Add to that the underwater limit of 125%, and the probability that the appraisal would even further cause the borrower(s) not to qualify because of getting an appraisal that did not give the value to keep the underwater limit at or below 125% – well, you get the picture.
The intended effect of these (and probably other) improvements is designed to enable millions of underwater homeowners to get better terms on their mortgage to help them prevent foreclosure The mortgage must be currently owned by FannieMae or FreddieMac, and cannot have been refinanced under the 1st HARP program. The full details are to be announced by November 15, with applications to be taken beginning December 1″ See original Patch..
Government HARP 2.0 Revisions Cons
Here is another opinion of a mortgage broker who thinks that the new HARP 2.0 revisions are government interventions, that are interfering with the natural way the underwater mortgage housing problem should be solved:
What do you think? Will the new HARP 2.0 Program help or interfere?
So What Is The Next Step?
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