Changes to Underwater Refinance Plan Going Into Effect
See If You Can Benefit
On October 24, 2011, President Obama announced plans to open up refinancing to more homeowners who are underwater. This proposal was a revision to the previous Home Affordable Refinance Program (HARP) and is now known as HARP 2.0.
Some of the major changes under HARP 2.0 include:
No underwater limits: Previously, borrowers whose loan-to-value limits were greater than 125 percent were ineligible to refinance. Now, borrowers can refinance no matter how far their homes have fallen in value.
Appraisals may be eliminated and underwriting relaxed for most borrowers: Being able to use this program may save time and money, and remove some of the anxiety from the refinancing process.
Deadline extended: Borrowers now have until December 31, 2013 to get refinanced under HARP 2.0.
These changes will be put into effect by Fannie Mae and Freddie Mac the week of March 19, 2012.
It's also important to note that the HARP 2.0 Program is for loans that were secured by Fannie Mae and Freddie Mac prior to June 1, 2009. Currently, loans obtained after this date are not eligible for this program. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:
www.freddiemac.com/mymortgage
www.fanniemae.com/loanlookup/
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