HARP 2 recently announced by Obama

Those Americans who will be helped by HARP 2 are:
1)borrowers whose loans were backed by Fannie Mae, Freddie Mac or the FHA 2) who are current on their mortgage
3) who have made the last 6 payments
4) who have not missed a payment in the last year
5) who can prove adequate employment or other income
6) and those borrowers who have been caught in the Catch 22 of not being able to refinance their loan because they owe more than the house is worth.

The previous HARP said these borrowers could only be 125% or less underwater. The new HARP 2 says it does not matter how underwater the borrower is. They must, however, meet all the criteria above.

Harp 2 basically addresses those borrowers who were strategically defaulting on their loans. Meaning, the borrower does have the means to keep paying the mortgage, but chooses not to because they believe they will never gain any equity on the property. They would rather cut their losses and begin again. Now, instead of conducting a short sale, these borrowers MAY be able to refinance IF their lender cooperates with the program.

Harp 2 does NOT address the millions of Americans who have lost their jobs or are now underemployed and are seeing their savings dwindle. Consequently, with HARP 2, we will not see a slowdown in the number of foreclosures and short sales in 2012. Harp 2 reaches those who are employed and not satisfied with their current interest rate and those who plan on living in their homes long enough to absorb the costs of refinancing...basically a few Middle Americans.

If you have questions regarding short sales, give Mary a call at 623-694-0354.